Houston, Texas-based ConocoPhillips (COP) explores, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. The stock is valued at $123 billion by market cap. It is expected to announce its Q3 earnings before the market opens on Thursday, October 31.
Ahead of the event, analysts expect ConocoPhillips to announce a profit of $1.88 per share, down 13% from $2.16 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS projections in three of the past four quarters while missing on one other occasion.
Analysts expect COP to report an EPS of $7.97 in fiscal 2024, down 9.1% from $8.77 in fiscal 2023. However, its EPS is projected to grow 12.6% year over year to $8.97 in fiscal 2025.
COP stock is down 9.4% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 22.5% gains and the S&P 500 Energy Sector SPDR’s (XLE) 7.6% returns over the same time frame.
The IEA's recent warning of "ample supply and slowing demand growth" through the end of 2024 has led to a significant drop in crude oil prices, weighing on COP’s market momentum. Weaker demand from China and rising global oil production further exacerbated concerns, influencing the decline in COP's performance.
On Oct. 15, ConocoPhillips shares declined over 3%, along with other energy stocks and service providers, as the price of WTI crude plunged more than 4% to a two-week low.
However, COP shares rose over 1% on Oct. 10, alongside other energy stocks, as WTI crude oil prices climbed more than 2%.
The consensus opinion on ConocoPhillips stock is extremely bullish, with a “Strong Buy” rating overall. Out of the 24 analysts covering the stock, 18 recommend “Strong Buy,” one advises “Moderate Buy,” and five suggest a “Hold” rating. This configuration is more bullish than three months ago, with 17 analysts suggesting a "Strong Buy."
The average target price for COP is $134.39, indicating a potential upside of 27.8% from the current price levels.
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