Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Evaluates a company's financial health and future potential through projected and historical earnings, sales, and cash flow [4] Momentum Score - Assesses stocks based on price trends and earnings estimate changes to identify optimal buying opportunities [5] VGM Score - Combines the three Style Scores to highlight stocks with attractive value, strong growth prospects, and positive momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] Stock Highlight: Cenovus Energy (CVE) - Cenovus Energy is a leading integrated energy firm based in Calgary, Canada, focusing on oil sands projects and natural gas production [11] - Currently rated 3 (Hold) with a VGM Score of A, CVE has a Momentum Style Score of B and has seen a 7.9% increase in share price over the past four weeks [12] - The earnings estimate for fiscal 2025 has been revised upwards, with the Zacks Consensus Estimate increasing by $0.09 to $1.46 per share, and an average earnings surprise of +26% [12]

Company Performance - Barrick's revenue totaled US$4.15 billion, an increase from US$3.37 billion year-over-year [1] - Barrick's adjusted earnings per share rose to 58 cents, compared to 30 cents per share a year ago [1] - MEG Energy reported net earnings of $159 million, down from $167 million in the same period last year [5][7] - Loblaw's profit attributable to common shareholders was $794 million, up from $777 million a year ago [9][13] - Manulife's net income attributed to shareholders was $1.8 billion, slightly down from $1.84 billion year-over-year [15] Production and Pricing - Barrick's gold production decreased to 829,000 ounces from 943,000 ounces a year ago, while the realized gold price increased to US$3,457 per ounce from US$2,494 per ounce [2] - Copper production for Barrick rose to 55,000 tonnes from 48,000 tonnes, with a realized copper price of US$4.39 per pound, up from US$4.27 per pound [2] - MEG Energy's production reached a record of 108,166 barrels per day, compared to 103,298 barrels per day in the prior-year quarter [6] Dividends and Corporate Changes - Barrick increased its quarterly base dividend to 12.5 cents per share from 10 cents, with an additional performance dividend of five cents per share, totaling 17.5 cents per share [3] - Barrick appointed Mark Hill as interim president and CEO following the departure of Mark Bristow, and is seeking a permanent replacement [3] Market Trends - Loblaw's food retail same-store sales increased by 2%, while drug retail same-store sales rose by 4%, with pharmacy and health-care same-store sales growth of 5.9% [11] - Manulife's core earnings in Asia and Canada reached record levels, with US$550 million in Asia and US$428 million in Canada [16]

Core Viewpoint - Cenovus Energy Inc. has successfully completed the acquisition of MEG Energy Corp, enhancing its portfolio of long-life, low-cost oil sands assets and adding significant production capacity [1][2] Group 1: Acquisition Details - The acquisition adds approximately 110,000 barrels per day of low-cost, long-life oil sands production to Cenovus [1] - Total consideration for the acquisition includes $752 million in cash for 25 million MEG shares, $3.44 billion in cash to MEG shareholders, and 143.9 million Cenovus common shares issued to MEG shareholders [5] - Estimated net debt assumed upon closing is approximately $800 million [5] Group 2: Strategic Impact - The acquisition is expected to have an immediate positive impact on Cenovus, with identified synergies creating significant value in both the short and long term [1] - Cenovus plans to provide updated guidance reflecting the MEG acquisition with its 2026 budget on December 11, 2025 [1] Group 3: Market Response - MEG common shares are anticipated to be delisted from the Toronto Stock Exchange at the close of market on November 14, 2025 [2]

Core Viewpoint - MEG Energy shareholders have approved the $8.6 billion takeover by Cenovus Energy, marking a significant shift in Canada's oil sands sector [1]. Group 1: Shareholder Approval - At a special meeting, 86% of MEG shareholders voted in favor of the acquisition, surpassing the two-thirds threshold required [2]. - The approval concludes a lengthy process that began when Strathcona Resources made a hostile bid for MEG, which was rejected by the board [2]. Group 2: Bid Details - Cenovus' initial bid was valued at C$7.9 billion (US$5.7 billion) and was increased to C$8.6 billion (US$6.2 billion) by late October, equating to approximately $29.80 per MEG share, with half in cash and half in Cenovus stock [3]. - MEG shareholders were given the option to choose between cash or shares in the new combined company [3]. Group 3: Regulatory Challenges - The acquisition faced regulatory scrutiny due to a separate transaction involving Cenovus and Strathcona, which delayed the shareholder vote multiple times [4]. - Strathcona, which holds a 14.2% stake in MEG, transitioned from an opponent to a supporter of the Cenovus takeover following the inquiry [4]. Group 4: Final Steps - The remaining steps for the merger include standard closing conditions such as regulatory approvals from Canada's Competition Bureau and Alberta's Energy Regulator, along with final court approval [5]. - These approvals are expected to be formalities, paving the way for the merger to proceed [5]. Group 5: Industry Impact - The merger will create one of North America's largest integrated oil producers, enhancing Cenovus' heavy oil operations in the Christina Lake region and solidifying its position in the Canadian oil sands [6].

Mergers and Acquisitions - MEG Energy shareholders agreed to be acquired by Cenovus Energy [1] - The acquisition followed a dramatic five-month bidding war [1] - Multiple attempts were made to secure enough support for deal approval [1]

Core Insights - Cenovus Energy Inc. reported third-quarter 2025 adjusted earnings per share of 52 cents, exceeding the Zacks Consensus Estimate of 40 cents, and up from 31 cents in the same quarter last year [1][9] - Total quarterly revenues reached $9.58 billion, slightly above the Zacks Consensus Estimate of $9.56 billion, but down from $10.45 billion year-over-year [1][9] Operational Performance - The Oil Sands unit's operating margin was C$2.29 billion, a decrease from C$2.47 billion a year ago, with daily oil sands production increasing by 9.3% to 640.6 thousand barrels [3] - The Conventional unit's operating margin improved significantly to C$41 million from C$12 million year-over-year, with daily production rising to 28 thousand barrels [4] - The Offshore segment's operating margin was C$256 million, slightly up from C$252 million, but daily liquid production fell to 16.1 thousand barrels from 18.9 thousand barrels [5] - Total upstream production for the quarter was 832.9 thousand barrels of oil equivalent per day, compared to 771.3 Mboe/d in the previous year [5] Downstream Performance - The Canadian Manufacturing unit's operating margin increased to C$111 million from C$60 million, processing 105.4 thousand barrels of crude oil per day [6] - The U.S. Refining unit reported an operating margin of C$253 million, a significant recovery from a negative margin of C$383 million in the prior-year quarter, with crude oil processed volumes rising to 605.3 MBbl/D from 543.5 MBbl/D [6][7] Expenses - Transportation and blending expenses decreased to C$2.54 billion from C$2.66 billion year-over-year, while expenses for purchased products fell to C$8 billion from $9.3 billion [8] Capital Investment & Balance Sheet - Cenovus made a total capital investment of C$1.15 billion in the quarter, with cash and cash equivalents of C$1.9 billion and long-term debt of C$7.2 billion as of September 30, 2025 [10] Guidance - The company provided full-year 2025 guidance for total upstream production in the range of 805-825 MBoe/d and updated U.S. downstream throughput guidance to 510-515 MBbl/d, with anticipated capital expenditure between $4.6-$5 billion [11]

Group 1 - MEG Energy shareholders approved a buyout by Cenovus Energy [1]

Core Viewpoint - Cenovus Energy (CVE) is identified as a strong value stock with a Zacks Rank of 1 (Strong Buy) and an "A" grade in the Value category, indicating it is likely undervalued in the current market [4][8]. Valuation Metrics - The Forward P/E ratio of CVE is 12.78, which is lower than the industry average of 14.60. Over the past 52 weeks, CVE's Forward P/E has fluctuated between 6.47 and 15.19, with a median of 10.45 [4]. - CVE's P/B ratio stands at 1.44, compared to the industry's average of 1.57. The P/B ratio has ranged from 0.93 to 1.57 in the past year, with a median of 1.27 [5]. - The P/S ratio for CVE is 0.81, which is lower than the industry average of 1.05. This ratio is favored by value investors as it is less susceptible to manipulation [6]. - CVE has a P/CF ratio of 5.63, which is attractive compared to the industry's average of 5.86. The P/CF ratio has varied from 3.46 to 5.82 over the last 12 months, with a median of 4.49 [7]. Investment Outlook - The combination of strong valuation metrics and a positive earnings outlook suggests that CVE is an impressive value stock at the moment, indicating potential for investment [8].

Group 1 - Cenovus Energy (CVE) reported a significant earnings beat, generating substantial cash flow from operations [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] - The focus is on identifying undervalued and under-followed oil companies, as well as out-of-favor midstream companies that present compelling investment opportunities [2] Group 2 - The analysis includes a comprehensive breakdown of companies' balance sheets, competitive positions, and development prospects [1] - Members of the Oil & Gas Value Research group receive early access to analysis and insights not available on public platforms [1]

Core Insights - Cenovus Energy (CVE) reported a significant earnings beat, generating substantial cash flow from its operations [2] Group 1: Company Analysis - Cenovus Energy is identified as an undervalued player in the oil and gas sector, with a focus on its balance sheet, competitive position, and development prospects [1] - The company operates in a cyclical industry characterized by boom and bust cycles, requiring patience and experience for successful investment [2] Group 2: Investment Community - The investing group Oil & Gas Value Research, led by a retired CPA with an MBA and MA, seeks out under-followed oil companies and midstream companies that present compelling investment opportunities [2] - The group provides an active chat room for investors to discuss recent information and share ideas related to oil and gas investments [2]