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ConocoPhillips (COP) Suffers a Larger Drop Than the General Market: Key Insights

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ConocoPhillips (COP - Free Report) closed at $95.54 in the latest trading session, marking a -1.21% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.07%. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, lost 1.69%.

Heading into today, shares of the energy company had gained 8.15% over the past month, outpacing the Oils-Energy sector's loss of 0.33% and the S&P 500's gain of 0.94%.

The investment community will be paying close attention to the earnings performance of ConocoPhillips in its upcoming release. The company's earnings per share (EPS) are projected to be $1.23, reflecting a 37.88% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $14.21 billion, down 3.6% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.39 per share and a revenue of $61.27 billion, representing changes of -17.97% and +7.58%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for ConocoPhillips. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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 last 30 days, the Zacks Consensus EPS estimate has moved 1.32% higher. Currently, ConocoPhillips is carrying a Zacks Rank of #3 (Hold).

Investors should also note ConocoPhillips's current valuation metrics, including its Forward P/E ratio of 15.13. This expresses a discount compared to the average Forward P/E of 18.78 of its industry.

It's also important to note that COP currently trades at a PEG ratio of 2.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Integrated - United States industry currently had an average PEG ratio of 2.25 as of yesterday's close.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 202, this industry ranks in the bottom 19% of all industries, numbering over 250.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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