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ConocoPhillips (COP) Gains But Lags Market: What You Should Know

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In the latest trading session, ConocoPhillips (COP) closed at $94.06, marking a +0.85% move from the previous day. The stock lagged the S&P 500's daily gain of 1.21%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.14%.

Heading into today, shares of the energy company had gained 1.98% over the past month, lagging the Oils-Energy sector's gain of 2.47% and the S&P 500's gain of 3.2% in that time.

Wall Street will be looking for positivity from ConocoPhillips as it approaches its next earnings report date. This is expected to be August 4, 2022. On that day, ConocoPhillips is projected to report earnings of $3.78 per share, which would represent year-over-year growth of 197.64%. Meanwhile, our latest consensus estimate is calling for revenue of $17.92 billion, up 75.48% from the prior-year quarter.

COP's full-year Zacks Consensus Estimates are calling for earnings of $14.64 per share and revenue of $73.59 billion. These results would represent year-over-year changes of +143.59% and +52.21%, respectively.

Investors should also note any recent changes to analyst estimates for ConocoPhillips. These recent revisions tend to reflect the evolving nature of short-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.

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. Within the past 30 days, our consensus EPS projection has moved 0.6% lower. ConocoPhillips is currently a Zacks Rank #3 (Hold).

In terms of valuation, ConocoPhillips is currently trading at a Forward P/E ratio of 6.37. Its industry sports an average Forward P/E of 11.35, so we one might conclude that ConocoPhillips is trading at a discount comparatively.

It is also worth noting that COP currently has a PEG ratio of 0.31. 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. The Oil and Gas - Integrated - United States industry currently had an average PEG ratio of 0.42 as of yesterday's close.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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