ConocoPhillips (COP), with a market cap of $123.70 billion, is an independent exploration and production company in the energy sector. Headquartered in Houston, Texas, ConocoPhillips is dedicated to the responsible and efficient extraction and production of oil, natural gas, and natural gas liquids. With operations spanning North America, Europe, Asia, and Australia, ConocoPhillips plays a vital role in the global energy market.
ConocoPhillips has significantly underperformed the broader market over the last year. The stock has declined 8.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 18.5%. In 2024 alone, the stock has lost 8.9%, compared to SPX's 12.1% gains on a YTD basis.
Narrowing the focus, COP also underperformed the iShares U.S. Oil & Gas Exploration & Production ETF (IEO). The exchange-traded fund has declined marginally on the YTD basis, easily dwarfing COP’s returns during the same period.
On Aug. 1, ConocoPhillips reported its Q2 results. The stock declined 2.5% on the day it released earnings. The company reported earnings of $2.3 billion or $1.98 per share, up from $2.2 billion or $1.84 per share in the year-ago quarter.
For the current fiscal year, ending in December, analysts expect COP’s EPS to decline 1% to $8.68 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing on one other occasion.
Among the 24 analysts covering COP stock, the consensus rating is a “Strong Buy.” That’s based on 18 “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
This configuration is more bullish than three months ago, with 15 suggesting a “Strong Buy.”
On Aug. 2, Leo Mariani from Roth MKM assigned a “Buy” rating to ConocoPhillips, with a price target of $138, which indicates a 30.5% upside from the current levels.
The mean price target of $142.26 represents a 33.6% premium to COP’s current price levels. The Street-high price target of $161 suggests an upside potential of 52.2%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
