ConocoPhillips (COP) closed the most recent trading day at $89.22, moving -0.49% from the previous trading session. This move lagged the S&P 500's daily gain of 2.44%. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 0.28%.
Coming into today, shares of the energy company had gained 24.05% in the past month. In that same time, the Oils-Energy sector gained 9.72%, while the S&P 500 lost 9.65%.
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 $2.20 per share. This would mark year-over-year growth of 1257.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.07 billion, up 132.6% from the year-ago period.
Any recent changes to analyst estimates for ConocoPhillips should also be noted by investors. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 8.51% higher. ConocoPhillips is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note ConocoPhillips's current valuation metrics, including its Forward P/E ratio of 9.89. For comparison, its industry has an average Forward P/E of 11.02, which means ConocoPhillips is trading at a discount to the group.
Also, we should mention that COP has a PEG ratio of 0.65. 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. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 0.56 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 166, putting it in the bottom 35% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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