Devon Energy logo sign in the foreground with an oil drilling rig and pumpjacks at sunset in the background. Key Points Devon Energy’s all-stock merger with Coterra reflects accelerating consolidation across a maturing U.S. shale industry focused on efficiency over expansion. The combined company gains geographic diversification and scale, but investors are watching closely for dividend sustainability and potential EPS dilution. Analysts have responded positively, with price targets suggesting upside, ...

Coterra Energy Inc. (NYSE:CTRA) is one of the high-growth, low P/E stocks to buy now. On February 6, Wolfe Research touted Coterra Energy Inc. (NYSE:CTRA) as one of its top oil-sector picks, poised to benefit from heightened merger and acquisition activity. 10 High-Growth Low-PE Stocks to Buy Now According to the research firm, there are unique opportunities in an industry that is consolidating and evolving in response to changing market dynamics. Consequently, it maintained an Outperform rating on the s ...

Core Viewpoint - The article highlights the resilience of the US equity market, driven by a strong economy, solid earnings, and accommodative monetary policies, while emphasizing the potential of high-growth stocks despite premium valuations [1]. Economic Outlook - Wall Street strategists expect continued corporate earnings growth in 2026, with S&P 500 company earnings projected to rise by 15.5% in 2026, compared to 13.2% in 2025 and 12.1% in 2024, indicating a positive market outlook [2]. - Some economists predict muted economic growth in 2026, suggesting a focus on growth stocks with low valuations may be beneficial [6]. Investment Strategy - The methodology for selecting high-growth low-PE stocks involved identifying companies with over 20% sales growth and more than 10% upside potential, while focusing on those with a forward P/E of less than 15 and popularity among hedge funds [8]. Company Highlights - **Coterra Energy Inc. (NYSE:CTRA)**: - 5-Year Revenue Growth: 22.43% - Forward P/E: 13.19 - Stock Upside Potential: 11.11% - Recently announced a merger with Devon Energy Corp., creating the largest US shale operator with an enterprise value of approximately $58 billion [11][12]. - **Delta Air Lines, Inc. (NYSE:DAL)**: - 5-Year Revenue Growth: 29.96% - Forward P/E: 10.32 - Stock Upside Potential: 11.20% - The company has approved a quarterly dividend and plans to modernize its fleet with new Airbus wide-body jets to meet strong demand [15][16][18].

Core Insights - Mette Uglebjerg, senior vice president of global food and marketing at Alimentation Couche-Tard, will become CEO of Matas Group on May 1 [1] - Uglebjerg has been a key figure in Couche-Tard's foodservice program and marketing since late 2024, previously leading Circle K operations in Europe and managing the Denmark business unit [2] - Her leadership contributed to the integration of GetGo Café + Market's offerings into Couche-Tard's operations, with the Fresh Food, Fast program reaching 6,000 c-stores globally [3] - Uglebjerg's departure will create a leadership gap at Couche-Tard, with no immediate successor announced [4] - Uglebjerg expressed enthusiasm for her new role while acknowledging her commitment to Couche-Tard until her departure [5] - Another executive, Niall Anderton, will also leave Couche-Tard in May to become CEO of Musgrave Group [5]

Core Viewpoint - Devon Energy Corp. announced an all-stock merger with Coterra Energy Inc., creating a $58 billion energy company, raising investor questions about stock and dividend implications [1] Group 1: Dividend Implications - After the merger, the combined company plans to pay a quarterly dividend of $0.315 per share, a 31% increase from Devon's previous $0.24 per share [2] - The dividend is not legally guaranteed until declared by the board each quarter, and the merger requires shareholder approval from both companies [3] Group 2: Ownership and Control - Devon shareholders will own 54% of the merged entity, while Coterra shareholders will own 46%, allowing Devon to retain control [3] Group 3: Merger Structure and Rationale - The all-stock structure prevents an increase in debt, which is crucial given the volatility in oil and gas prices [4] - The choice of an all-stock deal is driven by debt management and market conditions, signaling confidence in the long-term value of the combined entity [5] Group 4: Strategic Focus Post-Merger - The merger aims for scale, diversification, and resilience rather than explosive production growth, focusing on operational efficiency [6] - Geographic diversification will reduce reliance on any single basin or commodity cycle [8] Group 5: Market Reactions - Wall Street reactions are mixed, with some analysts expressing long-term optimism and others remaining cautious, awaiting clearer guidance [9] Group 6: Investment Considerations - The merger may appeal to long-term income-focused investors, while short-term traders may prefer to wait for more clarity on dividends and quarterly results [11][16] Group 7: Future Milestones - Key milestones to watch include upcoming earnings reports, regulatory approvals, and shareholder votes expected in the second quarter of 2026 [12]

Coterra Energy Inc. (NYSE:CTRA) is one of the Best Cheap Stocks to Buy Right Now. Coterra Energy and Devon Energy announced on February 2 a $58 billion all-stock merger, which would make the combined company one of the largest shale producers in the Permian Basin. Combined, these companies currently produce an equivalent of 1.6 million barrels of oil per day. As part of the deal, Coterra shareholders will receive 0.70 shares for each share held. Devon will effectively own 54% of the combined company. KeyB ...

Core Viewpoint - Coterra Energy's stock performance has been strong recently, with a notable increase over the past month, but upcoming earnings may show a decline in EPS despite a significant revenue increase [1][2]. Group 1: Stock Performance - Coterra Energy's stock was up 1.15% at $30.66, trailing the S&P 500's gain of 1.97% [1] - Over the last month, Coterra Energy's shares increased by 19.28%, outperforming the Oils-Energy sector's gain of 9.19% and the S&P 500's loss of 1.49% [1] Group 2: Earnings Report Expectations - Coterra Energy is set to release its earnings on February 26, 2026, with an anticipated EPS of $0.46, reflecting a 6.12% decrease from the same quarter last year [2] - Revenue is expected to reach $1.88 billion, indicating a 34.76% increase compared to the year-ago quarter [2] Group 3: Fiscal Year Projections - For the entire fiscal year, earnings are projected at $2.14 per share, representing a 27.38% increase from the prior year, while revenue is expected to be $7.52 billion, showing a 37.81% increase [3] - Recent modifications to analyst estimates indicate changing business trends, with positive revisions suggesting analyst optimism [3] Group 4: Analyst Ratings and Valuation - Coterra Energy currently holds a Zacks Rank of 5 (Strong Sell), with a 25.6% decline in the Zacks Consensus EPS estimate over the past month [5] - The company has a Forward P/E ratio of 15.53, which is higher than the industry's Forward P/E of 12.89, and a PEG ratio of 0.66 compared to the industry average of 2.43 [6] Group 5: Industry Context - The Oil and Gas - Exploration and Production - United States industry is ranked 225 in the Zacks Industry Rank, placing it in the bottom 9% of over 250 industries [7] - The strength of industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Kahn Swick & Foti, LLC is investigating the proposed sale of Soho House & Co Inc. to affiliates of MCR, focusing on whether the offered price of $9.00 per share adequately reflects the company's value and the process leading to this valuation [1]. Group 1: Proposed Sale Details - Shareholders of Soho House will receive $9.00 in cash for each share they own under the proposed transaction [1]. - The investigation aims to assess the adequacy of both the price and the process that led to this proposed sale [1]. Group 2: Legal Inquiry - Kahn Swick & Foti, LLC, led by former Louisiana Attorney General Charles C. Foti, Jr., is seeking to determine if the proposed sale undervalues the company [1]. - Shareholders who believe the transaction undervalues the company are encouraged to discuss their legal rights with KSF [1].

Core Viewpoint - The proposed sale of Coterra Energy Inc. to Devon Energy Corporation is under investigation to assess the fairness of the transaction for Coterra shareholders [1] Company Summary - Coterra Energy Inc. shareholders will receive 0.70 share of Devon common stock for each share of Coterra owned in the proposed transaction [1]

Core Viewpoint - Roth Capital downgraded Coterra Energy (CTRA) to Neutral from Buy, with a revised price target of $28, down from $30, indicating a belief that no higher offers will emerge for the company at this time [1] Company Analysis - The downgrade reflects concerns over the "modestly disappointing" takeout price offered by Devon Energy (DVN) [1] - Coterra Energy has an enterprise value of $25 billion, suggesting that a larger company would be necessary for any acquisition [1] Competitive Landscape - Companies with adjacency to the Delaware Basin, such as ConocoPhillips (COP), Chevron (CVX), and EOG Resources (EOG), are not expected to engage in a competitive bidding situation for Coterra [1]