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

ConocoPhillips (COP) closed the most recent trading day at $71.08, moving +0.57% from the previous trading session.

This story originally appeared on Zacks

ConocoPhillips (COP) closed the most recent trading day at $71.08, moving +0.57% from the previous trading session. This move lagged the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, lost 0.4%.

- Zacks

Prior to today's trading, shares of the energy company had lost 4.2% over the past month. This has lagged the Oils-Energy sector's of 0% and the S&P 500's loss of 0.91% in that time.

ConocoPhillips will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2022. In that report, analysts expect ConocoPhillips to post earnings of $2.19 per share. This would mark year-over-year growth of 1252.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.28 billion, up 136.07% from the year-ago period.

COP's full-year Zacks Consensus Estimates are calling for earnings of $5.97 per share and revenue of $45.88 billion. These results would represent year-over-year changes of +715.46% and +138.27%, respectively.

Any recent changes to analyst estimates for ConocoPhillips should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. ConocoPhillips is currently a Zacks Rank #3 (Hold).

Digging into valuation, ConocoPhillips currently has a Forward P/E ratio of 11.84. Its industry sports an average Forward P/E of 13.63, so we one might conclude that ConocoPhillips is trading at a discount comparatively.

Investors should also note that COP has a PEG ratio of 0.79 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Integrated - United States was holding an average PEG ratio of 0.79 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 163, putting it in the bottom 36% 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.

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