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

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In the latest trading session, ConocoPhillips (COP - Free Report) closed at $54.47, marking a +1.43% move from the previous day. This change lagged the S&P 500's 1.52% gain on the day.

Coming into today, shares of the energy company had lost 11.17% in the past month. In that same time, the Oils-Energy sector lost 8.07%, while the S&P 500 gained 2.41%.

COP will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2021. On that day, COP is projected to report earnings of $1.02 per share, which would represent year-over-year growth of 210.87%. Our most recent consensus estimate is calling for quarterly revenue of $9.91 billion, up 146.64% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.09 per share and revenue of $40.77 billion, which would represent changes of +521.65% and +111.71%, respectively, from the prior year.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 11.32% higher. COP currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, COP is holding a Forward P/E ratio of 13.12. For comparison, its industry has an average Forward P/E of 13.02, which means COP is trading at a premium to the group.

Meanwhile, COP's PEG ratio is currently 1.87. 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. COP's industry had an average PEG ratio of 1.87 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 61, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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