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ConocoPhillips (COP) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
Iron Mountain (IRM) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

In the latest trading session, ConocoPhillips (COP) closed at $63.97, marking a -1.13% move from the previous day. This change lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, added 0.21%.

Coming into today, shares of the energy company had lost 4.73% in the past month. In that same time, the Oils-Energy sector gained 0.47%, while the S&P 500 gained 4.65%.

Wall Street will be looking for positivity from COP as it approaches its next earnings report date. This is expected to be April 30, 2019. The company is expected to report EPS of $0.92, down 4.17% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.16 billion, up 2.19% from the prior-year quarter.

COP's full-year Zacks Consensus Estimates are calling for earnings of $4.12 per share and revenue of $38.62 billion. These results would represent year-over-year changes of -9.05% and -0.27%, respectively.

Any recent changes to analyst estimates for COP should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 19% higher within the past month. COP is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, COP currently has a Forward P/E ratio of 15.71. Its industry sports an average Forward P/E of 14.66, so we one might conclude that COP is trading at a premium comparatively.

It is also worth noting that COP currently has a PEG ratio of 1.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow COP in the coming trading sessions, be sure to utilize Zacks.com.


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