COP's Valuation Looks Attractive: Is it Time to Buy the Stock?

Zacks12-17 22:07

ConocoPhillips COP is currently considered relatively undervalued, trading at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 4.97x. This figure is below the broader industry average of ...

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This figure is below the broader industry average of ...</p>\n\n<a href=\"https://finance.yahoo.com/news/cops-valuation-looks-attractive-time-140700987.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1201861165.SGD","symbol_name":"Natixis Harris Associates Global Equity PA SGD","start_time":0,"source_url":"https://finance.yahoo.com/news/cops-valuation-looks-attractive-time-140700987.html","article_id":"2492961227","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Bb3HhzvR12atkV.H1bCxmg--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/f2386bab33b7b86b8371993cc9af867a"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492961227","pubTimestamp":1734444420,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"ConocoPhillips COP is currently considered relatively undervalued, trading at a trailing 12-month enterprise value to EBITDA  of 4.97x. This figure is below the broader industry average of 6.79x and lower than other major upstream companies, such as Diamondback Energy Inc FANG and EOG Resources Inc EOG, which are trading at 9.73x and 5.32x EV/EBITDA, respectively. This discounted valuation suggests that the stock may offer the potential for further price appreciation.However, a thorough evaluation is necessary to assess whether this potential is backed by the company’s fundamentals, growth prospects and prevailing market conditions. A more in-depth analysis will help determine the stock's true value.COP to Capitalize on Synergies From Marathon Oil Integration. Late last month, ConocoPhillips completed the Marathon Oil acquisition. The integration has broadened ConocoPhillips' key Lower 48 portfolio while enabling it to expand its presence in prolific, low-cost U.S. basins such as Eagle","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1201861165.SGD":"Natixis Harris Associates Global Equity PA SGD","LU0122376428.USD":"贝莱德世界能源基金A2","LU1815333072.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"AUP\" (USD) INC","COP":"康菲石油","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU0957791311.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"ZU\" (USD) ACC","SHEL":"SHELL PLC SPON ADS EACH REPR 2 ORD SHS","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","IE00B2Q91V27.USD":"GUINNESS GLOBAL ENERGY \"C\" (USD) ACC","IE00BGHQF524.EUR":"GUINNESS GLOBAL ENERGY \"C\" (EUR) ACC","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU1988902786.USD":"FULLERTON LUX FUNDS GLOBAL ABSOLUTE ALPHA \"I\" (USD) ACC","LU1506573853.SGD":"MANULIFE GF GLOBAL EQUITY \"AA\" (SGD) INC","BK4201":"综合性石油与天然气企业","BK4213":"石油与天然气的勘探与生产","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC","LU2360032135.SGD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (SGDHDG) INC","LU0278409577.USD":"MANULIFE GLOBAL FUND-GLOBAL RESOURCES FUND \"AA\" (USD) INC","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU0345781412.USD":"NINETY ONE GSF GLOBAL NATURAL RESOURCES \"A\" (USD) INC","LU0942090050.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD)  INC","BK4570":"地缘局势概念股","LU2125154778.USD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (USD) INC","LU1162221912.USD":"FRANKLIN INCOME \"A\" (USD) ACC","LU0868494708.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) INC","LU0061474960.USD":"天利环球焦点基金AU Acc","LU0256331488.USD":"SCHRODER ISF GLOBAL ENERGY \"A\" ACC","LU0788109394.HKD":"BGF WORLD ENERGY \"A2\" (HKDHGD) ACC","BK4585":"ETF&股票定投概念","LU0345780950.USD":"NINETY ONE GSF GLOBAL NATURAL RESOURCES \"A\" (USD) ACC","FANG":"Diamondback Energy","LU2125154935.USD":"ALLSPRING (LUX) WF GLOBAL EQUITY ENHANCED INCOME \"I\" (USD) INC","BK4566":"资本集团","LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","LU0648000940.SGD":"Natixis Harris Associates Global Equity RA SGD","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","LU0368265418.SGD":"Blackrock World Energy Fund A2 SGD-H","EOG":"依欧格资源","LU0266512127.USD":"摩根大通环球自然资源 A(acc)","LU0787776722.HKD":"AB SELECT US EQUITY PORTFOLIO \"A\" (HKD) ACC","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU0300736492.USD":"FRANKLIN NATURAL RESOURCES \"A\" (USD) INC","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","LU0477156953.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"RE\" (USD) ACC","LU0314106906.USD":"MANULIFE GF GLOBAL EQUITY \"AA\" (USD) INC"},"translate_title":"COP的估值看起来很有吸引力：是时候购买该股票了吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SHEL":1,"COP":1,"EOG":1,"FANG":1},"content_text":"ConocoPhillips COP is currently considered relatively undervalued, trading at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 4.97x. This figure is below the broader industry average of 6.79x and lower than other major upstream companies, such as Diamondback Energy Inc FANG and EOG Resources Inc EOG, which are trading at 9.73x and 5.32x EV/EBITDA, respectively. This discounted valuation suggests that the stock may offer the potential for further price appreciation.\n Image Source: Zacks Investment Research\nHowever, a thorough evaluation is necessary to assess whether this potential is backed by the company’s fundamentals, growth prospects and prevailing market conditions. A more in-depth analysis will help determine the stock's true value.\nCOP to Capitalize on Synergies From Marathon Oil Integration\nLate last month, ConocoPhillips completed the Marathon Oil acquisition. The integration has broadened ConocoPhillips' key Lower 48 portfolio while enabling it to expand its presence in prolific, low-cost U.S. basins such as Eagle Ford, Bakken, Delaware and Permian, adding more than 2 billion barrels of resources.\nThe leading upstream energy company has consistently prioritized acquisitions that support its long-term objective of enhancing stockholder value. With the completion of its latest deal, ConocoPhillips anticipates achieving annual savings exceeding $1 billion by integrating operations and expects the savings to be fully realized within the next 12 months.\nCOP’s Robust Financial Health Offers a Safety Net\nLike the Marathon Oil deal, previous acquisitions of Concho Resources and Shell plc's SHEL Permian assets have increased ConocoPhillips' debt. However, most analysts believe COP will maintain a stronger balance sheet than industry peers, thanks to its substantial size and robust earnings.\nAs evident in the snapshot, COP’s total debt-to-capitalization of almost 27% is lower than 31.1% of the industry’s composite stocks. The company’s debt-to-capitalization ratio has consistently been lower than the composite stocks over the past few years. Thus, the robust financial position will aid the leading oil producer in combating periods of low crude prices.\n Image Source: Zacks Investment Research\nWhat Should Investors Do With COP Stock?\nConocoPhillips is also deeply committed to returning capital to its shareholders. For 2024, COP plans to return at least $9 billion through a mix of dividends and share buybacks. Specifically, in the fourth quarter of 2024, COP anticipates spending nearly $2 billion on repurchasing its shares.\nDespite recent positive developments, investors should factor in ConocoPhillips' heightened vulnerability to oil price volatility, given its exclusive focus on exploration and production activities.\nAdditionally, projects such as Willow and LNG infrastructure will necessitate higher capital expenditures in the near future, especially in 2025. Although these investments are aimed at long-term growth, they could put pressure on cash flows in the short term.\nThere are also execution risks following the Marathon acquisition. While the deal is expected to generate significant synergies, there are still challenges in fully realizing these savings and seamlessly integrating the operations.\nThese unfavorable events are partially reflected in the stock price movement of COP, which carries a Zacks Rank #3 (Hold). Year to date (YTD), the stock declined 11.8%, underperforming the 4.3% gain of the industry’s composite stocks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nYTD Price Chart\n Image Source: Zacks Investment Research\nTherefore, while the undervaluation of ConocoPhillips' stock presents an appealing investment opportunity, investors might prefer to wait until these uncertainties are addressed. This will provide greater insight into the company’s ability to implement its growth strategies, manage risks and deliver stable returns.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nConocoPhillips (COP) : Free Stock Analysis Report\nEOG Resources, Inc. (EOG) : Free Stock Analysis Report\nDiamondback Energy, Inc. (FANG) : Free Stock Analysis Report\nShell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492961227"}