Heading into today, shares of the energy company had gained 6.1% over the past month, outpacing the Oils-Energy sector’s gain of 4.11% and the S&P 500’s gain of 2.43% in that time.
Wall Street will be looking for positivity from COP as it approaches its next earnings report date. On that day, COP is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 191.3%. Our most recent consensus estimate is calling for quarterly revenue of $9.63 billion, up 139.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.46 per share and revenue of $38.97 billion, which would represent changes of +456.7% and +102.36%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for COP. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.08% higher within the past month. COP is currently a Zacks Rank #3 (Hold).
Digging into valuation, COP currently has a Forward P/E ratio of 17.32. Its industry sports an average Forward P/E of 19.73, so we one might conclude that COP is trading at a discount comparatively.
Investors should also note that COP has a PEG ratio of 3.46 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Oil and Gas – Integrated – United States was holding an average PEG ratio of 3.46 at yesterday’s closing price.
The Oil and Gas – Integrated – United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 222, which puts it in the bottom 13% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.