ConocoPhillips (COP) Gains But Lags Market: What You Should Know
In the latest trading session, ConocoPhillips (COP) closed at $96.40, marking a +1.22% move from the previous day. This move lagged the S&P 500's daily gain of 1.76%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 3.03%.
Prior to today's trading, shares of the energy company had lost 14.7% over the past month. This has lagged the Oils-Energy sector's loss of 12.2% and the S&P 500's loss of 5.94% in that time.
ConocoPhillips will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.43, down 25.69% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $15.63 billion, down 18.95% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.79 per share and revenue of $65.7 billion. These totals would mark changes of -12.8% and -20.02%, respectively, from last 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 3.23% higher. ConocoPhillips is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note ConocoPhillips's current valuation metrics, including its Forward P/E ratio of 8.08. This valuation marks a discount compared to its industry's average Forward P/E of 10.46.
Also, we should mention that COP has a PEG ratio of 0.44. 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 0.42 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 105, putting it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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