Why Civitas Resources, Inc. (CIVI) Went Down on Tuesday

We recently published an article titled Two of 10 Worst-Performing Stocks Fall to All-Time Lows on Tuesday. In this article, we are going to take a look at where Civitas Resources, Inc. (NYSE:CIVI) stands against the other stocks.

Wall Street extended a lackluster performance on Tuesday, with two of its major indices ending with marginal movements amid a series of key economic factors dampening investor sentiment.

Only the Dow Jones finished in the green territory, posting a 0.37 percent gain. In contrast, the S&P decreased by 0.47 percent while the tech-heavy Nasdaq fell by 1.37 percent.

Mirroring the mostly broader pessimism are 10 companies, with two even falling to new all-time lows. In this article, we have detailed the reasons behind their drop.

To come up with Tuesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A close up of a tanker truck transporting crude oil, natural gas liquids, and natural gas.

Civitas Resources, Inc. (NYSE:CIVI)

Civitas Resources, Inc. (NYSE:CIVI) fell to its lowest price of $40.26 on Tuesday before gaining little momentum to end the day at $40.35 apiece, or down by 18.15 percent from its previous close following mixed earnings performance in the fourth quarter and full year 2024.

In its latest earnings release, Civitas Resources, Inc. (NYSE:CIVI) said net income in the last quarter of the year dived by 50 percent to $151 million from $302 million registered in the same period a year earlier, despite total operating revenues growing by 14.7 percent to $1.292 billion from $1.126 billion year-on-year.

However, net income for full year 2024 increased by 6.8 percent to $838 million from $784 million, with total revenues growing by 49 percent to $5.206 billion from $3.479 billion.

Overall CIVI ranks 3rd on our list of Tuesday’s worst performers. While we acknowledge the potential of CIVI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as CIVI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.