U.S. Markets close in 1 min
  • S&P 500

    -5.32 (-0.15%)
  • Dow 30

    -85.17 (-0.30%)
  • Nasdaq

    -25.56 (-0.22%)
  • Russell 2000

    -11.08 (-0.68%)
  • Crude Oil

    -1.69 (-4.05%)
  • Gold

    +11.60 (+0.61%)
  • Silver

    +0.15 (+0.60%)

    +0.0034 (+0.2847%)
  • 10-Yr Bond

    +0.0190 (+2.38%)
  • Vix

    -0.72 (-2.45%)

    +0.0202 (+1.5608%)

    -0.9600 (-0.9102%)

    +1,628.82 (+14.73%)
  • CMC Crypto 200

    +9.43 (+3.85%)
  • FTSE 100

    -112.72 (-1.91%)
  • Nikkei 225

    +72.42 (+0.31%)

ConocoPhillips (COP) a Must-Add to Your Portfolio: Here's Why

Zacks Equity Research

We are upbeat about ConocoPhillips’ COP prospects and believe that the leading explorer and producer of oil and gas is a promising pick right now.

The company currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best opportunities for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.

Let’s take a look at the other factors that make this upstream energy firm an attractive bet.

On the basis of proved oil and gas reserves and production volumes, ConocoPhillips is the largest independent exploration and production company in the world. The company has worldwide operations, in regions like the United States, Canada, Australia and Europe.

In the United States, the company has a strong foothold in prolific shale plays like Eagle Ford, Bakken and Permian. Notably, from 2020 to 2029, ConocoPhillips expects to generate roughly $19 billion free cashflows from operations in Lower 48.

Of the total projected free cashflows, the company expects to generate $12 billion from Eagle Ford alone. This is because ConocoPhillips estimated roughly 3,800 undrilled locations in Eagle Ford that has improved the explorer’s production outlook.

Moreover, the company has significantly lowered exposure to debt as compared to composite stocks belonging to the industry. At the end of third-quarter 2019, the company had a debt-to-capitalization ratio of 30%, lower than the industry average of 42.8%.

Other Stocks to Consider

Other prospective players in the energy space are Ecopetrol SA EC, California Resources Corporation CRC and CNX Resources Corporation CNX. While Ecopetrol sports a Zacks Rank #1, California Resources and CNX Resources carry a Zacks Rank #2 at present.

Ecopetrol is likely to have witnessed earnings growth of 7% in 2019.

California Resources’ earnings beat the Zacks Consensus Estimate in three of the past four quarters.

CNX Resources’ earnings surpassed the Zacks Consensus Estimate in two of the prior four quarters. It has a positive earnings surprise of 34.8%, on average, for the trailing four quarters.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.

This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.

See their latest picks free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CNX Resources Corporation. (CNX) : Free Stock Analysis Report
Ecopetrol S.A. (EC) : Free Stock Analysis Report
California Resources Corporation (CRC) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research