In the latest trading session, ConocoPhillips (COP) closed at $121.17, marking a -1.62% move from the previous day. This change lagged the S&P 500's daily loss of 0.94%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 1.53%.
Coming into today, shares of the energy company had gained 6.04% in the past month. In that same time, the Oils-Energy sector gained 4.35%, while the S&P 500 gained 1.85%.
ConocoPhillips will be looking to display strength as it nears its next earnings release. On that day, ConocoPhillips is projected to report earnings of $2.15 per share, which would represent a year-over-year decline of 40.28%. Our most recent consensus estimate is calling for quarterly revenue of $15.44 billion, down 28.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.73 per share and revenue of $60.31 billion, which would represent changes of -35.43% and -26.59%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ConocoPhillips. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. ConocoPhillips is currently a Zacks Rank #3 (Hold).
Investors should also note ConocoPhillips's current valuation metrics, including its Forward P/E ratio of 14.11. For comparison, its industry has an average Forward P/E of 15.39, which means ConocoPhillips is trading at a discount to the group.
Meanwhile, COP's PEG ratio is currently 0.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Integrated - United States was holding an average PEG ratio of 0.79 at yesterday's closing price.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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