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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 $70.02, moving +0.75% from the previous trading session. This change lagged the S&P 500's 2.12% gain on the day. Meanwhile, the Dow gained 2.13%, and the Nasdaq, a tech-heavy index, added 2.64%.

Prior to today's trading, shares of the energy company had lost 12.47% over the past month. This has lagged the Oils-Energy sector's loss of 8.07% and the S&P 500's loss of 4.4% in that time.

Wall Street will be looking for positivity from COP as it approaches its next earnings report date. This is expected to be February 7, 2019. On that day, COP is projected to report earnings of $1.43 per share, which would represent year-over-year growth of 217.78%. Our most recent consensus estimate is calling for quarterly revenue of $10.74 billion, up 22.94% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.79 per share and revenue of $39.15 billion, which would represent changes of +698.33% and +20.15%, respectively, from the prior year.

Investors should also note any 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 6.01% higher. COP is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, COP currently has a Forward P/E ratio of 14.51. This represents a discount compared to its industry's average Forward P/E of 14.89.

Investors should also note that COP has a PEG ratio of 1.61 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 1.61 based on yesterday's closing prices.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 24, putting it in the top 9% 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.

To follow COP in the coming trading sessions, be sure to utilize Zacks.com.




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