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

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ConocoPhillips (COP - Free Report) closed at $65.07 in the latest trading session, marking a +0.11% move from the prior day. This change lagged the S&P 500's 0.84% gain on the day. Elsewhere, the Dow gained 0.92%, while the tech-heavy Nasdaq added 1.06%.

Coming into today, shares of the energy company had gained 2.85% in the past month. In that same time, the Oils-Energy sector gained 3.63%, while the S&P 500 gained 3.95%.

Wall Street will be looking for positivity from COP as it approaches its next earnings report date. This is expected to be February 4, 2020. In that report, analysts expect COP to post earnings of $0.79 per share. This would mark a year-over-year decline of 30.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.87 billion, down 33.68% from the year-ago period.

Investors should also note any recent changes to analyst estimates for COP. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 8.25% higher. COP is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that COP has a Forward P/E ratio of 20.27 right now. For comparison, its industry has an average Forward P/E of 19.76, which means COP is trading at a premium to the group.

It is also worth noting that COP currently has a PEG ratio of 2.13. 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. The Oil and Gas - Integrated - United States was holding an average PEG ratio of 3.06 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 40, putting it in the top 16% 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.

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


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