MattGush
WTI crude oil has been remarkably quiet for the past year. While the cost of a barrel is 18% cheaper than it was this time 12 months ago, the price chart reveals a consolidation pattern. Some pundits have suggested that the past
ConocoPhillips: Lackluster Oil And Gas Action, Low-Teens P/E Warranted
Summary
- I have a hold rating on ConocoPhillips due to its fair low-teens P/E ratio, high free cash flow, and large dividend yield, but unimpressive growth trends.
- The recent 4% rise in the US Dollar Index has pressured WTI and natural gas prices, impacting oil and gas stocks like COP.
- COP's Q2 earnings beat expectations, but revenue fell short; Q3 production is expected to decline slightly YoY, with key risks including lower oil prices and rising costs.
- Technically, COP shares are rangebound between $90 and $138, with a neutral absolute stance and bearish relative to the S&P 500.
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