CNQ Should I Buy
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Canadian Natural Resources Ltd (CNQ) is not a strong buy for a beginner, long-term investor at this moment. Despite its strong dividend history and profitability at low oil prices, the recent financial performance shows significant declines in net income and EPS. Additionally, hedge funds are selling, and analysts have lowered price targets, reflecting cautious sentiment. While technical indicators are moderately bullish, the lack of strong proprietary trading signals and mixed options data suggest holding off on buying for now.
The MACD is positive and contracting, RSI is neutral at 69.346, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near resistance levels (R1: 40.318), which may limit immediate upside potential.
Strong dividend history with a 9,300% increase since 2001 and a current yield of 4.3%.
Profitability at oil prices above $21 per barrel, showcasing a competitive advantage.
Operating cash flow of $14.8 billion in the last year, covering dividend payments.
Significant YoY declines in net income (-73.52%) and EPS (-72.64%) in Q3
Hedge funds are selling, with a 9618.75% increase in selling activity last quarter.
Analysts have downgraded the stock and lowered price targets, citing higher capital spending and constrained shareholder returns.
No recent congress trading data or strong proprietary trading signals.
In Q3 2025, revenue increased by 7.01% YoY to $9.52 billion, but net income dropped by 73.52% YoY to $600 million. EPS also declined by 72.64% YoY to $0.29, and gross margin fell to 27.87%, down 17.42% YoY. These metrics indicate weakening profitability despite revenue growth.
Analysts have a cautious outlook, with multiple firms lowering price targets (e.g., JPMorgan to C$48, Morgan Stanley to C$50). Evercore downgraded the stock to 'In Line,' citing higher capital spending and constrained shareholder returns. Goldman Sachs maintains a Buy rating but lowered its target to $35, reflecting challenging macro conditions for oil.
