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

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ConocoPhillips (COP - Free Report) closed the most recent trading day at $59.85, moving +0.64% from the previous trading session. This move lagged the S&P 500's daily gain of 0.88%.

Prior to today's trading, shares of the energy company had gained 6.77% over the past month. This has lagged the Oils-Energy sector's gain of 9.06% and outpaced the S&P 500's gain of 0.15% in that time.

COP will be looking to display strength as it nears its next earnings release. On that day, COP is projected to report earnings of $0.80 per share, which would represent year-over-year growth of 186.96%. Our most recent consensus estimate is calling for quarterly revenue of $9.43 billion, up 134.92% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.34 per share and revenue of $38.42 billion. These totals would mark changes of +444.33% and +99.51%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for COP. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 5.17% higher. COP is currently a Zacks Rank #3 (Hold).

Looking at its valuation, COP is holding a Forward P/E ratio of 17.8. This represents a discount compared to its industry's average Forward P/E of 20.25.

Also, we should mention that COP has a PEG ratio of 3.56. 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. COP's industry had an average PEG ratio of 3.56 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 195, putting it in the bottom 24% 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.

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