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

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ConocoPhillips (COP - Free Report) closed the most recent trading day at $104.37, moving -0.13% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.22% for the day. Meanwhile, the Dow experienced a drop of 0.33%, and the technology-dominated Nasdaq saw an increase of 0.76%.

Coming into today, shares of the energy company had lost 1.15% in the past month. In that same time, the Oils-Energy sector lost 11.32%, while the S&P 500 gained 1.47%.

The investment community will be closely monitoring the performance of ConocoPhillips in its forthcoming earnings report. The company is scheduled to release its earnings on October 31, 2024. The company's upcoming EPS is projected at $1.82, signifying a 15.74% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $14.63 billion, showing a 1.61% drop compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.91 per share and a revenue of $58.56 billion, representing changes of -9.81% and -0.03%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for ConocoPhillips. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.79% lower. ConocoPhillips presently features a Zacks Rank of #4 (Sell).

Looking at valuation, ConocoPhillips is presently trading at a Forward P/E ratio of 13.22. This indicates a discount in contrast to its industry's Forward P/E of 17.36.

Investors should also note that COP has a PEG ratio of 0.84 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Integrated - United States industry currently had an average PEG ratio of 2.81 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 211, placing it within the bottom 17% 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.

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


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