ConocoPhillips (COP) Stock Sinks As Market Gains: What You Should Know
ConocoPhillips (COP) closed the most recent trading day at $101.77, moving -0.96% from the previous trading session. This change lagged the S&P 500's daily gain of 1.13%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 0.91%.
Heading into today, shares of the energy company had gained 14.65% over the past month, outpacing the Oils-Energy sector's gain of 8.56% and the S&P 500's gain of 2.65% in that time.
Investors will be hoping for strength from ConocoPhillips as it approaches its next earnings release. On that day, ConocoPhillips is projected to report earnings of $2.53 per share, which would represent year-over-year growth of 266.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.1 billion, up 43.02% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.46 per share and revenue of $57.47 billion, which would represent changes of +74.04% and +18.87%, 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 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 7.39% higher. ConocoPhillips is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, ConocoPhillips is holding a Forward P/E ratio of 9.83. This valuation marks a discount compared to its industry's average Forward P/E of 12.17.
Also, we should mention that COP has a PEG ratio of 0.5. 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 0.5 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 36, putting it in the top 15% 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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