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ConocoPhillips (COP) Stock Sinks As Market Gains: Here's Why

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In the latest market close, ConocoPhillips (COP - Free Report) reached $110.89, with a -1.16% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.23%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 0.34%.

Prior to today's trading, shares of the energy company had lost 7.05% over the past month. This has lagged the Oils-Energy sector's loss of 4.97% and the S&P 500's gain of 3.96% in that time.

Analysts and investors alike will be keeping a close eye on the performance of ConocoPhillips in its upcoming earnings disclosure. On that day, ConocoPhillips is projected to report earnings of $2.27 per share, which would represent year-over-year growth of 23.37%. In the meantime, our current consensus estimate forecasts the revenue to be $15.38 billion, indicating a 19.4% growth compared to the corresponding quarter of the prior year.

COP's full-year Zacks Consensus Estimates are calling for earnings of $9.01 per share and revenue of $61.39 billion. These results would represent year-over-year changes of +2.74% and +4.81%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for ConocoPhillips. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.46% downward. ConocoPhillips is currently a Zacks Rank #3 (Hold).

In terms of valuation, ConocoPhillips is presently being traded at a Forward P/E ratio of 12.45. This indicates a discount in contrast to its industry's Forward P/E of 15.52.

It's also important to note that COP currently trades at a PEG ratio of 2.49. 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 2.94 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 164, putting it in the bottom 35% 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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