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ConocoPhillips (COP) Laps the Stock Market: Here's Why

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ConocoPhillips (COP - Free Report) closed at $103.50 in the latest trading session, marking a +0.58% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.54%. At the same time, the Dow added 0.72%, and the tech-heavy Nasdaq gained 0.65%.

The energy company's stock has dropped by 7.49% in the past month, falling short of the Oils-Energy sector's loss of 3.91% and the S&P 500's gain of 4.86%.

Analysts and investors alike will be keeping a close eye on the performance of ConocoPhillips in its upcoming earnings disclosure. The company is expected to report EPS of $2.08, down 3.7% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $15.23 billion, indicating a 2.47% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.41 per share and a revenue of $59.75 billion, indicating changes of -4.1% and +2.01%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for ConocoPhillips. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.63% lower. ConocoPhillips presently features a Zacks Rank of #3 (Hold).

With respect to valuation, ConocoPhillips is currently being traded at a Forward P/E ratio of 12.23. This denotes a discount relative to the industry's average Forward P/E of 16.06.

Investors should also note that COP has a PEG ratio of 0.78 right now. 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 2.05 as of yesterday's close.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 151, placing it within the bottom 41% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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