Houston, Texas-based ConocoPhillips (COP), with a market cap of $133.1 billion, is a leading global energy company. The company specializes in hydrocarbon exploration and production across various regional energy resources.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and ConocoPhillips fits this criterion perfectly, exceeding the mark. ConocoPhillips stands out for its significant presence in both conventional and unconventional energy resources, coupled with its strategic investments in LNG projects and oil sands in Canada.
However, the oil and gas company is down 15.8% from its 52-week high of $135.18, achieved in April. Shares of COP are marginally up over the past three months, outpacing the iShares U.S. Oil & Gas Exploration & Production ETF’s (IEO) 2.7% loss over the same time frame.
Longer term, COP is down nearly 2% on a YTD basis, lagging behind IEO's 4.8% gains. Moreover, shares of ConocoPhillips have declined 3.3% over the past 52 weeks, compared to IEO's marginal increase over the same time frame.
To confirm the bearish price trend, COP has been trading below its 200-day and 50-day moving average since May, despite occasional fluctuations.
ConocoPhillips has struggled over the past year due to a sharp decline in natural gas prices and lower heating fuel demand from a milder winter. Additionally, increased costs and operational challenges, particularly in the Permian Basin due to pipeline maintenance and third-party constraints, have also hurt performance.
Moreover, the stock dipped 2.5% on Aug. 1 after reporting lower-than-expected Q2 earnings results, with a profit of $1.98 per share and revenue of $14.1 billion. The expected lower Q3 production and planned turnarounds in several key regions also raised investor apprehensions.
In comparison, rival Exxon Mobil Corporation (XOM) has outperformed – not just COP but the broader equity benchmark. XOM shares have risen 7.4% over the past 52 weeks and are up around 18% on a YTD basis.
Despite COP’s weak price action, analysts are optimistic about its prospects. The stock has a consensus rating of "Strong Buy" from the 24 analysts in coverage, and the mean price target of $140.43 is a premium of 23.4% to current levels.
On the date of publication, Sohini Mondal 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.
