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ConocoPhillips (COP) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

ConocoPhillips (COP) closed the most recent trading day at $61.76, moving +0.49% from the previous trading session. This change outpaced the S&P 500's 0.46% gain on the day. Meanwhile, the Dow gained 0.9%, and the Nasdaq, a tech-heavy index, added 0.59%.

Prior to today's trading, shares of the energy company had gained 4.06% over the past month. This has outpaced the Oils-Energy sector's gain of 3.51% and the S&P 500's gain of 4.04% in that time.

COP will be looking to display strength as it nears its next earnings release, which is expected to be July 30, 2019. In that report, analysts expect COP to post earnings of $1.06 per share. This would mark a year-over-year decline of 2.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.63 billion, up 4.19% from the year-ago period.

COP's full-year Zacks Consensus Estimates are calling for earnings of $3.99 per share and revenue of $39.14 billion. These results would represent year-over-year changes of -11.92% and +1.07%, respectively.

Investors might also notice recent changes to analyst estimates for COP. 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.

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 8.19% lower within the past month. COP is currently a Zacks Rank #3 (Hold).

Looking at its valuation, COP is holding a Forward P/E ratio of 15.4. For comparison, its industry has an average Forward P/E of 14.21, which means COP is trading at a premium to the group.

Meanwhile, COP's PEG ratio is currently 1.62. 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 1.55 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 90, which puts it in the top 36% 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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