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Is It Worth Holding ConocoPhillips (COP) in Your Portfolio?
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We issued an updated research report on upstream energy player, ConocoPhillips (COP - Free Report) on Jan 2, 2017.
The company is expected to benefit from OPEC & non-OPEC producer’s recent deal to curb crude production. However, ConocoPhillips – the leading exploration and production company – could not survive the persistent unfavorable business scenario and posted average negative earnings surprises over the last four quarters.
OPEC has agreed to curb its oil production amid an oversupplied commodity market. This in turn, is expected to recover oil prices. Even non-OPEC like Russia has joined output cuts for the first time in 15 years. Being an upstream energy firm, ConocoPhillips will be able to earn more cash flows after selling crude at higher prices.
Moreover, ConocoPhillips’ price chart shows that it has advanced 15.2% over the last 6 months in comparison to 1.8% price movement for the Zacks-categorized Oil & Gas – U.S. Integrated industry. OPEC’s current decision is likely to fuel growth going forward.
ConocoPhillips’ initiatives toward liquids-rich plays like Eagle Ford, Bakken and Permian are staring to bear fruit. In fact, the company recorded a year-over-year increase in daily production, which averaged 1.557 million barrels of oil equivalent (MMBOE) during the third quarter. Most importantly, the company managed to grow volume from its portfolio of resources although it has lowered capital expenditure over the last two years. We also appreciate the company’s continued efforts to lower operating expenses.
Despite those positives, the company failed to surpass the Zacks Consensus Estimate in two of the last four quarters with an average negative surprise of 13.12%. Additionally, over the past 60 days, for the fourth-quarter 2016, ConocoPhillips saw the Zacks Consensus Estimate to deteriorate to a loss of 28 cents from 27 cents loss.
Over the past 60 days, Abraxas saw the Zacks Consensus Estimate to improve to a loss of 1 cent from 3 cents loss.
Noble Midstream also witnessed the Zacks Consensus Estimate to improve to earnings of 70 cents from 54 cents profit during the aforesaid period.
Suncor posted an average earnings surprise of 40.55% for the last four quarters.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
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Is It Worth Holding ConocoPhillips (COP) in Your Portfolio?
We issued an updated research report on upstream energy player, ConocoPhillips (COP - Free Report) on Jan 2, 2017.
The company is expected to benefit from OPEC & non-OPEC producer’s recent deal to curb crude production. However, ConocoPhillips – the leading exploration and production company – could not survive the persistent unfavorable business scenario and posted average negative earnings surprises over the last four quarters.
OPEC has agreed to curb its oil production amid an oversupplied commodity market. This in turn, is expected to recover oil prices. Even non-OPEC like Russia has joined output cuts for the first time in 15 years. Being an upstream energy firm, ConocoPhillips will be able to earn more cash flows after selling crude at higher prices.
Moreover, ConocoPhillips’ price chart shows that it has advanced 15.2% over the last 6 months in comparison to 1.8% price movement for the Zacks-categorized Oil & Gas – U.S. Integrated industry. OPEC’s current decision is likely to fuel growth going forward.
ConocoPhillips’ initiatives toward liquids-rich plays like Eagle Ford, Bakken and Permian are staring to bear fruit. In fact, the company recorded a year-over-year increase in daily production, which averaged 1.557 million barrels of oil equivalent (MMBOE) during the third quarter. Most importantly, the company managed to grow volume from its portfolio of resources although it has lowered capital expenditure over the last two years. We also appreciate the company’s continued efforts to lower operating expenses.
Despite those positives, the company failed to surpass the Zacks Consensus Estimate in two of the last four quarters with an average negative surprise of 13.12%. Additionally, over the past 60 days, for the fourth-quarter 2016, ConocoPhillips saw the Zacks Consensus Estimate to deteriorate to a loss of 28 cents from 27 cents loss.
Stocks to Consider
Some better-ranked players in the energy sector are Abraxas Petroleum Corp. (AXAS - Free Report) , Noble Midstream Partners LP and Suncor Energy Inc. (SU - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, Abraxas saw the Zacks Consensus Estimate to improve to a loss of 1 cent from 3 cents loss.
Noble Midstream also witnessed the Zacks Consensus Estimate to improve to earnings of 70 cents from 54 cents profit during the aforesaid period.
Suncor posted an average earnings surprise of 40.55% for the last four quarters.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>