Coterra Energy (CTRA) is set to report its Q3 2025 results soon, with analysts anticipating a meaningful jump in profit. Many are watching closely because strong earnings growth could reinforce the generally positive outlook on the stock.

Coterra Energy’s stock has faced some pressure lately, with a 30-day share price return of -4.05% and a year-to-date decline of -11.25%. Long-term holders have seen a 1-year total shareholder return in positive territory at 1.14%. Despite shorter-term volatility, upbeat forecasts for stronger earnings and the company’s plans to ramp up oil volumes and share buybacks are fueling renewed interest and suggesting that market momentum could be building as the next earnings report approaches.

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Given its recent pullback, upbeat analyst forecasts, and a share price well below the average target, investors face a key question: is Coterra Energy undervalued, or is all of that anticipated growth already factored in?

Most Popular Narrative: 29.3% Undervalued

With Coterra Energy closing at $23.20 versus a narrative fair value of $32.79, the narrative signals an attractive upside from current levels. This sets the stage for a closer look at what underpins this bullish outlook.

The deployment of advanced drilling and completion technologies, including successful wellbore redesigns, simul-frac fleets, and longer laterals, has reduced per-foot costs (notably a 12% YoY cost drop in the Permian) and improved capital efficiency. This has created sustainable improvements in net margins and free cash flow.

Want the story behind the valuation jump? The narrative spotlights a combination of sharp cost reductions, breakthrough production tech, and ambitious profit growth targets. Uncover the crucial assumptions fueling this premium price target and see how they could change the game for Coterra Energy.

Result: Fair Value of $32.79 (UNDERVALUED)

However, persistent weakness in natural gas prices and unresolved operational challenges could weigh on Coterra’s profit outlook, even though analysts maintain bullish long-term projections.

Build Your Own Coterra Energy Narrative

If you have a different perspective or want to dig into the numbers yourself, you can put together your own view on Coterra Energy in just a few minutes. Do it your way Do it your way.

A great starting point for your Coterra Energy research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.