Investors choosing between State Street Energy Select Sector SPDR ETF (XLE +0.40%) and iShares Global Clean Energy ETF (ICLN -3.21%) face a choice between low-cost traditional fossil fuel exposure and a broader, utility-heavy renewable energy basket.
Both funds target the energy industry but offer fundamentally different strategies. While the State Street fund tracks the performance of large-cap energy companies within the S&P 500, ICLN focuses on global companies that produce energy from renewable sources like solar and wind. This comparison highlights how these distinct approaches impact cost, volatility, and historical returns, noting that the State Street fund has $39.5 billion in assets under management (AUM) compared to the iShares fund at $2.4 billion.
Snapshot (cost & size)MetricICLNXLEIssueriSharesSPDRShare price$18.37 (as of 2026-07-23)$59.38 (as of 2026-07-23)Expense ratio0.39%0.08%1-yr return (as of July 23, 2026)33.20%41.00%Dividend yield1.00%2.60%Beta1.110.41AUM$2.4B$39.5BBeta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on July 23.
The State Street fund is significantly more affordable, sporting an expense ratio of 0.08%, which is nearly five times lower than the 0.39% charged by the iShares fund. Investors looking for income may also prefer XLE, as it offers a higher payout with its 2.60% trailing-12-month dividend yield.
Performance & risk comparisonMetricICLNXLEMax drawdown (5 yr)(57.20%)(26.00%)Growth of $1,000 over 5 years (total return)$869$2,935What's insideThe State Street Energy Select Sector SPDR ETF holds 21 companies, providing 100% exposure to the energy sector. Its largest positions include Exxonmobil Holdings (XOM -0.04%) at 20.3%, Chevron (CVX +0.19%) at 14.4%, and ConocoPhillips (COP +0.07%) at 5.9%. This fund was launched in 1998 and is engineered to mirror the price appreciation and dividend income of the Energy Select Sector Index. It grants precise access to oil, natural gas, and consumable fuel firms.
iShares Global Clean Energy ETF takes a broader approach with 105 holdings across several sectors, including technology at 34%, and utilities at 33%, and industrials at 31%. Its top holdings include Bloom Energy Inc (BE -14.54%) at 14.8%, First Solar Inc (FSLR -1.52%) at 8.4%, and Nextpower Inc (NXP +0.14%) 7.3%. This fund incorporates an ESG screen and focuses on sustainable power solutions globally, mirroring an index of international companies. It was launched in 2008. iShares Global Clean Energy ETF has paid $0.18 per share over the trailing 12 months, which on its recent ~$18.37 share price works out to a 1.00% yield.
Which fund is the better buy?These two ETFs take a very different approach to investing in the energy business. The State Street fund, XLE, holds the biggest names in the U.S. oil and natural gas industry, providing exposure to producers and retailers like ExxonMobil and Chevron. About half the fund is in large-cap stocks.
ICLN, the iShares offering, is focused on renewable energy companies and so avoids fossil fuel producers altogether. It also is stylistically a more diverse ETF, holdings just less than half its assets in its top 10 holdings (XLE is close to three quarters in its top 10). About 23% of ICLN is in small cap stocks, 39% in mid caps, and the balance in large caps. Unlike XLE, which is all domestic U.S. oil and gas businesses, ICLN is also geographically more diverse, with about 40% of the fund in U.S. businesses, 29% in emerging Asian markets, and the balance in both developed markets and other emerging markets.
In some ways, deciding between these funds is a decision about whether you believe renewable energy will continue to grow in importance or if fossil fuels in the U.S. will continue to dominate. Solar and wind are now the cheapest and second-most-cheapest, respectively, way to produce electricity on a utility scale, easily cheaper than natural gas and other methods, according to the investment bank Lazard. But U.S. oil and gas stocks benefit from the rise in global prices from the Iran war, meaning they should be able to bring in more net income due to elevated prices at the gas pumps.
Performance-wise, ICLN beats XLE on the 10-year time frame, with annualized returns of 10.7% to 8.9% for XLE. ICLN however lost about 1% in the five-year look-back, reflecting the volatilityu to renewable energy, which is highly sensitive to hikes in interest rates and global tariffs. In the past three months, however, ICLN is up 13% whiole XLE has lost 13%.
The best choice here is ICLN, given the macro trend toward renewable energy resources. For investors who can wait out near-term volatility, it’s the fund to buy.
For more guidance on ETF investing, check out the full guide at this link.
Arrowstreet Capital Limited Partnership raised its position in ConocoPhillips (NYSE: COP) by 46,105.6% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 2,310,281 shares of the energy producer's stock after buying an additional 2,305,281 shares during the period. Arrowstreet
In the latest trading session, ConocoPhillips (COP - Free Report) closed at $120.20, marking a +1.19% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.21%. Meanwhile, the Dow experienced a drop of 0.97%, and the technology-dominated Nasdaq saw a decrease of 2.15%.
Prior to today's trading, shares of the energy company had gained 11.1% outpaced the Oils-Energy sector's gain of 5.23% and the S&P 500's gain of 0.42%.
Investors will be eagerly watching for the performance of ConocoPhillips in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 6, 2026. In that report, analysts expect ConocoPhillips to post earnings of $2.96 per share. This would mark year-over-year growth of 108.45%. At the same time, our most recent consensus estimate is projecting a revenue of $17.54 billion, reflecting a 18.98% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.2 per share and revenue of $66.91 billion. These totals would mark changes of +49.35% and +8.72%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for ConocoPhillips. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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. Within the past 30 days, our consensus EPS projection has moved 8.78% lower. As of now, ConocoPhillips holds a Zacks Rank of #4 (Sell).
From a valuation perspective, ConocoPhillips is currently exchanging hands at a Forward P/E ratio of 12.91. This denotes a discount relative to the industry average Forward P/E of 19.19.
We can also see that COP currently has a PEG ratio of 1.43. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Oil and Gas - Integrated - United States industry was having an average PEG ratio of 1.96.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Baader Bank Aktiengesellschaft purchased a new stake in shares of ConocoPhillips (NYSE:COP – Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 4,422 shares of the energy producer’s stock, valued at approximately $545,000.
Other hedge funds and other institutional investors also recently modified their holdings of the company. Summit Asset Management LLC purchased a new position in shares of ConocoPhillips during the 1st quarter worth approximately $288,000. Wilkerson Advisory Group LLC raised its position in shares of ConocoPhillips by 19.0% in the 1st quarter. Wilkerson Advisory Group LLC now owns 797 shares of the energy producer’s stock worth $105,000 after acquiring an additional 127 shares in the last quarter. Madison Asset Management LLC lifted its stake in shares of ConocoPhillips by 79.7% in the 1st quarter. Madison Asset Management LLC now owns 210,608 shares of the energy producer’s stock valued at $27,800,000 after purchasing an additional 93,408 shares during the period. Cutler Investment Counsel LLC purchased a new position in shares of ConocoPhillips in the 1st quarter valued at approximately $230,000. Finally, Johnson Financial Group Inc. lifted its stake in shares of ConocoPhillips by 6.1% in the 1st quarter. Johnson Financial Group Inc. now owns 8,087 shares of the energy producer’s stock valued at $1,067,000 after purchasing an additional 468 shares during the period. Hedge funds and other institutional investors own 82.36% of the company’s stock.
ConocoPhillips Trading Up 1.5% Shares of NYSE:COP opened at $117.40 on Wednesday. The company has a market cap of $143.03 billion, a P/E ratio of 19.93, a PEG ratio of 1.40 and a beta of 0.12. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.29 and a quick ratio of 1.14. ConocoPhillips has a 1 year low of $85.57 and a 1 year high of $135.87. The stock’s fifty day moving average price is $113.48 and its 200-day moving average price is $113.84.
ConocoPhillips (NYSE:COP – Get Free Report) last posted its earnings results on Thursday, April 30th. The energy producer reported $1.89 EPS for the quarter, topping analysts’ consensus estimates of $1.72 by $0.17. ConocoPhillips had a net margin of 12.10% and a return on equity of 11.39%. The business had revenue of $15.76 billion during the quarter, compared to the consensus estimate of $15.62 billion. During the same quarter in the previous year, the firm posted $2.09 EPS. The firm’s revenue was down 6.1% on a year-over-year basis. Sell-side analysts expect that ConocoPhillips will post 9.2 earnings per share for the current year.
ConocoPhillips Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Monday, May 11th were given a dividend of $0.84 per share. This represents a $3.36 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend was Monday, May 11th. ConocoPhillips’s payout ratio is presently 57.05%.
Wall Street Analysts Forecast Growth Several brokerages recently weighed in on COP. Royal Bank Of Canada set a $130.00 price target on ConocoPhillips in a research note on Monday, June 22nd. BMO Capital Markets lowered their price objective on ConocoPhillips from $140.00 to $135.00 and set an “outperform” rating for the company in a research report on Wednesday, May 13th. Citigroup boosted their target price on shares of ConocoPhillips from $135.00 to $150.00 and gave the company a “buy” rating in a report on Thursday, April 2nd. Jefferies Financial Group upped their target price on shares of ConocoPhillips from $160.00 to $161.00 and gave the stock a “buy” rating in a research report on Monday, May 18th. Finally, The Goldman Sachs Group decreased their price target on shares of ConocoPhillips from $144.00 to $138.00 and set a “buy” rating for the company in a research note on Tuesday, June 30th. Eighteen analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $134.16.
Get Our Latest Research Report on COP
ConocoPhillips Company Profile (Free Report)
ConocoPhillips (NYSE: COP) is a Houston-based international energy company focused on exploration and production of oil and natural gas. Formed in 2002 through the merger of Conoco Inc and Phillips Petroleum Company, the firm operates as an independent upstream company that explores for, develops and produces crude oil, natural gas and natural gas liquids across a portfolio of global assets.
The company’s activities span conventional and unconventional resources and include onshore and offshore operations in multiple regions around the world.
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Key Takeaways ConocoPhillips agreed to terms to acquire a 42% stake in BP's unit redeveloping four Iraqi oil fields.The $25 billion project covers fields with more than 3 billion boe of initial gross recoverable resources.Existing production lowers execution risk, while exploration upside may support long-term growth. ConocoPhillips (COP - Free Report) , a leading U.S.-based exploration and production player, has announced that it has agreed to acquire a 42% stake in BP Energy Company of Kirkuk Limited (BP ECKL), a subsidiary of the British energy major BP plc (BP - Free Report) . The subsidiary is involved in the redevelopment of four large oil fields with producing wells in the Kirkuk region of Iraq. Through this partnership, COP will support the ongoing redevelopment efforts for these oil fields. The announcement mentioned that the agreement is anticipated to be signed during Iraq’s Prime Minister al-Zaidi's visit to Washington, D.C., in the United States.
BP ECKL operates under the Development and Production Contract (DPC), which enables it to develop and produce oil from the prominent Baba and Avanah domes of the Kirkuk oil field. The DPC also covers the Bai Hassan, Jambur and Khabbaz oil fields, all of which are currently producing. These fields have an estimated initial gross recoverable resource surpassing 3 billion barrels of oil equivalent (boe), highlighting significant resource potential.
The companies intend to recover these reserves via rehabilitation and upgradation of existing field infrastructure, redevelopment activities and optimization of field operations to improve efficiency. The joint venture project at the giant Kirkuk oil field is estimated to cost around $25 billion.
In addition to raising output from the existing fields, the contract area has exploration potential, suggesting the region may contain untapped oil and gas resources that could be developed later, supporting long-term production growth. The deal is expected to close by the end of 2026, pending necessary regulatory approvals and customary closing conditions.
COP believes that the oil fields included in this project are high-quality assets capable of generating attractive returns. The company’s CEO noted that this redevelopment opportunity aligns with ConocoPhillips’ disciplined approach to capital allocation, while providing exposure to a high-quality, long-life and large asset base that can benefit the company. The project leverages an existing production base, making it capital-efficient, while reducing execution risk and enabling it to generate returns faster. The deal will expand the company’s international portfolio of assets and is expected to boost its total production in the future. The company noted that the redevelopment of these large, established oilfields meets its low cost of supply criteria, while offering exploration upside.
Zacks Rank & Key PicksConocoPhillips and BP currently carry a Zacks Rank #4 (Sell).
Some better-ranked stocks from the energy sector are Par Pacific Holdings (PARR - Free Report) and Valero Energy (VLO - Free Report) . While Par Pacific currently sports a Zacks Rank #1 (Strong Buy), Valero Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Par Pacific Holdings operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho, refining operations in Hawaii, Wyoming, Washington and Montana, and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt and other petroleum products.
Valero Energy is a leading refining player with a robust network of 14 refineries located across the United States, Canada and Peru. The company has a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. Valero’s refineries have a combined Nelson Complexity Index of 11.5, which implies that they can process a wide variety of feedstocks, convert it into higher-value products and shift product yields according to market conditions.
Dimensional Fund Advisors LP increased its position in shares of ConocoPhillips (NYSE:COP – Free Report) by 0.7% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 11,044,489 shares of the energy producer’s stock after acquiring an additional 74,261 shares during the quarter. Dimensional Fund Advisors LP owned approximately 0.91% of ConocoPhillips worth $1,457,978,000 as of its most recent filing with the SEC.
Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Vanguard Group Inc. raised its holdings in ConocoPhillips by 0.3% in the 4th quarter. Vanguard Group Inc. now owns 120,251,183 shares of the energy producer’s stock valued at $11,256,713,000 after acquiring an additional 408,304 shares during the last quarter. Capital International Investors boosted its holdings in shares of ConocoPhillips by 5.9% during the fourth quarter. Capital International Investors now owns 48,360,060 shares of the energy producer’s stock worth $4,527,230,000 after purchasing an additional 2,714,663 shares during the last quarter. Charles Schwab Investment Management Inc. grew its position in shares of ConocoPhillips by 6.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 41,450,162 shares of the energy producer’s stock valued at $3,880,151,000 after purchasing an additional 2,350,645 shares during the period. Franklin Resources Inc. grew its position in shares of ConocoPhillips by 4.5% in the fourth quarter. Franklin Resources Inc. now owns 15,038,675 shares of the energy producer’s stock valued at $1,407,770,000 after purchasing an additional 648,432 shares during the period. Finally, Fisher Asset Management LLC increased its stake in ConocoPhillips by 1.3% in the fourth quarter. Fisher Asset Management LLC now owns 14,847,367 shares of the energy producer’s stock valued at $1,389,862,000 after purchasing an additional 193,401 shares during the last quarter. 82.36% of the stock is owned by hedge funds and other institutional investors.
Analysts Set New Price Targets Several equities analysts recently weighed in on the company. Jefferies Financial Group increased their target price on ConocoPhillips from $160.00 to $161.00 and gave the stock a “buy” rating in a research report on Monday, May 18th. Zacks Research cut ConocoPhillips from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 27th. Argus upped their price objective on shares of ConocoPhillips from $128.00 to $136.00 and gave the company a “buy” rating in a research note on Friday, May 15th. Barclays increased their price objective on shares of ConocoPhillips from $136.00 to $155.00 and gave the stock an “overweight” rating in a report on Tuesday, May 26th. Finally, Truist Financial decreased their target price on shares of ConocoPhillips from $128.00 to $115.00 and set a “hold” rating on the stock in a research report on Wednesday, July 8th. Eighteen analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $134.04.
Get Our Latest Research Report on ConocoPhillips
ConocoPhillips Price Performance Shares of ConocoPhillips stock opened at $114.70 on Monday. The business’s fifty day moving average price is $113.48 and its 200 day moving average price is $113.52. ConocoPhillips has a twelve month low of $85.57 and a twelve month high of $135.87. The company has a current ratio of 1.29, a quick ratio of 1.14 and a debt-to-equity ratio of 0.34. The stock has a market capitalization of $139.74 billion, a P/E ratio of 19.47, a PEG ratio of 1.39 and a beta of 0.12.
ConocoPhillips (NYSE:COP – Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The energy producer reported $1.89 EPS for the quarter, topping the consensus estimate of $1.72 by $0.17. The company had revenue of $15.76 billion during the quarter, compared to analyst estimates of $15.62 billion. ConocoPhillips had a return on equity of 11.39% and a net margin of 12.10%.The firm’s revenue was down 6.1% on a year-over-year basis. During the same period in the prior year, the firm posted $2.09 earnings per share. As a group, research analysts anticipate that ConocoPhillips will post 9.2 earnings per share for the current year.
ConocoPhillips Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Monday, May 11th were issued a dividend of $0.84 per share. The ex-dividend date was Monday, May 11th. This represents a $3.36 dividend on an annualized basis and a dividend yield of 2.9%. ConocoPhillips’s payout ratio is presently 57.05%.
Trending Headlines about ConocoPhillips Here are the key news stories impacting ConocoPhillips this week:
Positive Sentiment: ConocoPhillips agreed to acquire a 42% stake in BP’s Iraq venture, increasing its exposure to the Kirkuk oilfields and more than 3 billion barrels of recoverable resources. Reuters article Positive Sentiment: The company’s Iraq agreement is part of a broader wave of U.S. corporate commitments to support Iraqi energy development, which may signal additional international growth potential. Financial Post article Positive Sentiment: Energy shares were broadly stronger, helping support ConocoPhillips alongside a sector-wide move higher. Yahoo Finance article Neutral Sentiment: Several reports noted that COP tends to move with crude oil prices, so commodity trends remain an important near-term driver for the stock. Kalkine Media article ConocoPhillips Profile (Free Report)
ConocoPhillips (NYSE: COP) is a Houston-based international energy company focused on exploration and production of oil and natural gas. Formed in 2002 through the merger of Conoco Inc and Phillips Petroleum Company, the firm operates as an independent upstream company that explores for, develops and produces crude oil, natural gas and natural gas liquids across a portfolio of global assets.
The company’s activities span conventional and unconventional resources and include onshore and offshore operations in multiple regions around the world.
Read More Five stocks we like better than ConocoPhillips Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Shopify’s Quiet AI Strategy Could Be Its Biggest Advantage Yet Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks Want to see what other hedge funds are holding COP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for ConocoPhillips (NYSE:COP – Free Report).
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Allspring Global Investments Holdings LLC boosted its position in shares of ConocoPhillips (NYSE:COP – Free Report) by 8.5% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 591,022 shares of the energy producer’s stock after buying an additional 46,091 shares during the quarter. Allspring Global Investments Holdings LLC’s holdings in ConocoPhillips were worth $75,875,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds have also modified their holdings of COP. Independent Financial Group LLC bought a new position in ConocoPhillips in the 1st quarter worth $1,123,000. Prosperity Consulting Group LLC increased its stake in shares of ConocoPhillips by 5.0% in the first quarter. Prosperity Consulting Group LLC now owns 8,360 shares of the energy producer’s stock worth $1,104,000 after purchasing an additional 401 shares during the period. Smart Money Group LLC bought a new position in shares of ConocoPhillips in the first quarter worth about $210,000. Frazier Financial Advisors LLC boosted its stake in ConocoPhillips by 151.0% during the 1st quarter. Frazier Financial Advisors LLC now owns 241 shares of the energy producer’s stock valued at $32,000 after purchasing an additional 145 shares during the period. Finally, W.G. Shaheen & Associates DBA Whitney & Co grew its holdings in ConocoPhillips by 15.3% in the 1st quarter. W.G. Shaheen & Associates DBA Whitney & Co now owns 5,263 shares of the energy producer’s stock valued at $695,000 after buying an additional 697 shares during the last quarter. Hedge funds and other institutional investors own 82.36% of the company’s stock.
ConocoPhillips Stock Up 1.6% Shares of NYSE COP opened at $114.70 on Friday. The firm has a market capitalization of $139.74 billion, a PE ratio of 19.47, a price-to-earnings-growth ratio of 1.36 and a beta of 0.12. The company has a current ratio of 1.29, a quick ratio of 1.14 and a debt-to-equity ratio of 0.34. ConocoPhillips has a 1 year low of $85.57 and a 1 year high of $135.87. The firm’s 50-day moving average is $113.48 and its 200-day moving average is $113.37.
ConocoPhillips (NYSE:COP – Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The energy producer reported $1.89 earnings per share for the quarter, topping analysts’ consensus estimates of $1.72 by $0.17. ConocoPhillips had a net margin of 12.10% and a return on equity of 11.39%. The business had revenue of $15.76 billion during the quarter, compared to the consensus estimate of $15.62 billion. During the same period in the previous year, the firm posted $2.09 earnings per share. ConocoPhillips’s revenue for the quarter was down 6.1% compared to the same quarter last year. Equities analysts expect that ConocoPhillips will post 9.2 EPS for the current year.
ConocoPhillips Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Monday, May 11th were paid a $0.84 dividend. The ex-dividend date of this dividend was Monday, May 11th. This represents a $3.36 dividend on an annualized basis and a dividend yield of 2.9%. ConocoPhillips’s dividend payout ratio is 57.05%.
Analyst Ratings Changes A number of brokerages have recently commented on COP. Morgan Stanley cut their price target on ConocoPhillips from $153.00 to $146.00 and set an “overweight” rating for the company in a report on Friday, June 26th. Truist Financial cut their target price on shares of ConocoPhillips from $128.00 to $115.00 and set a “hold” rating for the company in a research note on Wednesday, July 8th. Capital One Financial reduced their price target on shares of ConocoPhillips from $156.00 to $154.00 and set an “equal weight” rating for the company in a report on Monday, May 18th. BMO Capital Markets decreased their price target on shares of ConocoPhillips from $140.00 to $135.00 and set an “outperform” rating on the stock in a research report on Wednesday, May 13th. Finally, Freedom Capital lowered shares of ConocoPhillips from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 6th. Eighteen equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, ConocoPhillips currently has an average rating of “Moderate Buy” and an average price target of $134.04.
Get Our Latest Analysis on ConocoPhillips
Key Headlines Impacting ConocoPhillips Here are the key news stories impacting ConocoPhillips this week:
Positive Sentiment: ConocoPhillips agreed to acquire a 42% stake in BP’s Iraq venture, increasing its exposure to the Kirkuk oilfields and more than 3 billion barrels of recoverable resources. Reuters article Positive Sentiment: The company’s Iraq agreement is part of a broader wave of U.S. corporate commitments to support Iraqi energy development, which may signal additional international growth potential. Financial Post article Positive Sentiment: Energy shares were broadly stronger, helping support ConocoPhillips alongside a sector-wide move higher. Yahoo Finance article Neutral Sentiment: Several reports noted that COP tends to move with crude oil prices, so commodity trends remain an important near-term driver for the stock. Kalkine Media article ConocoPhillips Company Profile (Free Report)
ConocoPhillips (NYSE: COP) is a Houston-based international energy company focused on exploration and production of oil and natural gas. Formed in 2002 through the merger of Conoco Inc and Phillips Petroleum Company, the firm operates as an independent upstream company that explores for, develops and produces crude oil, natural gas and natural gas liquids across a portfolio of global assets.
The company’s activities span conventional and unconventional resources and include onshore and offshore operations in multiple regions around the world.
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A major investment in the heart of a major oil-producing region was the engine driving ConocoPhillips (COP +1.66%) stock higher on Friday. The sprawling upstream oil company's shares rose by almost 2% on the news, effortlessly topping the S&P 500 index's 1% decline.
A potential gusher Before market open that morning, ConocoPhillips announced that it agreed with BP to acquire a 42% stake in the British energy giant's BP Energy Company of Kirkuk in Iraq. The deal gives the company a large piece of four oil fields located in Kirkuk, a region in northern Iraq.
Image source: Getty Images.
ConocoPhillips said that the agreement formalizing the deal is expected to be signed during Iraq Prime Minister Ali al-Zaidi's current visit to Washington, D.C.
In its press release on the arrangement, the company quoted CEO Ryan Lance as saying that "this unique redevelopment opportunity is well aligned with our disciplined investment framework, providing access to a material, high-quality and long-life resource base, comfortably meeting our cost of supply threshold."
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$
114.71
Black gold ConocoPhillips is a pure-play upstream company, meaning that its focus is entirely on the exploration and extraction of oil. Given that, whenever it has the chance to participate fully or partially in a promising play, it's usually a win.
That goes double for Kirkuk, which is immense even by the standards of the oil-rich Middle East. While it remains to be seen how the ConocoPhillips/BP relationship within BP Energy of Kirkuk will unfold, this buy-in is almost certain to be beneficial to the American company's operations and financials.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends BP and ConocoPhillips. The Motley Fool has a disclosure policy.
ConocoPhillips (COP - Free Report) closed the most recent trading day at $114.71, moving +1.66% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 1.01% for the day. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 1.4%.
Heading into today, shares of the energy company had gained 4.73% over the past month, outpacing the Oils-Energy sector's gain of 1.22% and the S&P 500's gain of 0.32%.
The investment community will be closely monitoring the performance of ConocoPhillips in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2026. The company is forecasted to report an EPS of $2.96, showcasing a 108.45% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.59 billion, up 19.36% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.2 per share and revenue of $66.91 billion, indicating changes of +49.35% and +8.72%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for ConocoPhillips. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 8.28% decrease. Currently, ConocoPhillips is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, ConocoPhillips is at present trading with a Forward P/E ratio of 12.26. This signifies a discount in comparison to the average Forward P/E of 19.72 for its industry.
We can also see that COP currently has a PEG ratio of 1.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Oil and Gas - Integrated - United States industry stood at 1.92 at the close of the market yesterday.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
A screen displays the logo for ConocoPhillips on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 6, 2022. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights, opens new tab
CompaniesJuly 17 (Reuters) - ConocoPhillips (COP.N), opens new tab said on Friday it had agreed to acquire a 42% stake in BP Energy Company of Kirkuk Ltd from BP (BP.L), opens new tab, joining the British oil major in redeveloping four producing oilfields in northern Iraq.
The agreement is expected to be signed during Iraqi Prime Minister Ali al-Zaidi's official visit to Washington, where he is seeking greater U.S. investment in Iraq's oil, gas and power sectors following disruptions caused by the conflict involving Iran.
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The contract covers more than 3 billion barrels of oil equivalent in initial gross recoverable resources, with additional exploration potential, across the Baba and Avanah domes of the Kirkuk oilfield and the Bai Hassan, Jambur and Khabbaz fields.
The transaction comes as BP reshapes its portfolio under CEO Meg O'Neill, who took over in April after a long career at Exxon Mobil (XOM.N), opens new tab.
O'Neill has pledged to simplify the company, tighten capital discipline and focus investment on its highest-return oil and gas assets while recycling capital through selective partnerships and asset sales.
For Iraq, this is another effort to attract greater U.S. investment into a sector that has increasingly been dominated by Chinese companies in recent years.
Zaidi's cabinet recently approved a deal with U.S.-based HKN Energy to develop the Himreen oilfield in northern Iraq and cleared a cooperation agreement with General Electric to expand the country's power generation and transmission.
The Kirkuk field, discovered about a century ago, remains one of Iraq's oldest producing oilfields and still holds significant remaining reserves, making it central to Baghdad's plans to sustain crude output over the coming decades.
BP said the deal would not affect the contract terms, the operator roles of Iraq's Northern Oil and North Gas companies, or the planned handover of operatorship to an entity staffed mainly by their personnel.
The companies said the joint venture is not expected to require significant capital contributions.
The deal is expected to close by the end of 2026.
Reporting by Pranav Mathur in Bengaluru; Editing by Anil D'Silva and Vijay Kishore
Our Standards: The Thomson Reuters Trust Principles., opens new tab
BP and ConocoPhillips are set to announce billions of dollars of new investments in Iraq on Friday as Washington seeks to bolster the country's energy sector and reduce the region's reliance on routes vulnerable to Iranian disruption, according to people familiar with the plans.
The announcements are expected during the U.S.-Iraq Business Summit in Washington, CNBC's Brian Sullivan told Access Middle East, citing sources. Iraqi Prime Minister Ali Al-Zaidi will meet senior U.S. officials and executives from major energy companies at the summit.
The event is expected to feature more than $60 billion in agreements and memorandums of understanding between U.S. companies and the Iraqi government.
watch now
The investments by BP, ConocoPhillips and other companies will be in billions of dollars, and might even be in tens of billions, the people said. Details of the individual commitments were not immediately available.
The deals come as the U.S seeks to expand investment in Iraq's energy sector, boost the country's oil production and diversify export routes vulnerable to regional disruption.
The Strait of Hormuz handled roughly a fifth of global oil before the war broke out and has become an increasingly important focus for energy markets after renewed tensions between the United States and Iran.
BP has a history in Iraq dating back about a century and has in recent years focused on the giant Rumaila oilfield. In 2025, the company finalized an agreement with Baghdad to redevelop oil and gas resources in Kirkuk, covering the Baba and Avanah domes of the Kirkuk field and the nearby Bai Hassan, Jambur and Khabbaz fields.
Iraq is courting some of the world's largest energy-services and industrial companies as it seeks to expand oil and gas production and accelerate development of its natural gas resources.
Al-Zaidi met representatives from Halliburton, Shell, Honeywell, Weatherford and Baker Hughes in Houston on Thursday, with talks covering investment, technology and potential participation in large energy projects, according to his office.
The logo of BP is seen at a petrol station in Kloten, Switzerland, October 3, 2017. REUTERS/Arnd Wiegmann/File Photo Purchase Licensing Rights, opens new tab
CompaniesJuly 17 (Reuters) - BP (BP.L), opens new tab and ConocoPhillips (COP.N), opens new tab are set to announce billions of dollars of new investments in Iraq on Friday as Washington seeks to bolster the country’s energy sector and reduce the region’s reliance on routes vulnerable to Iranian disruption, CNBC reported on Friday, citing sources.
The announcements are expected during the U.S.-Iraq Business Summit in Washington, the report said.
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Reuters could not immediately verify the report.
Reporting by Preetika Parashuraman in Bengaluru; Editing by Harikrishnan Nair
Our Standards: The Thomson Reuters Trust Principles., opens new tab
In the latest close session, ConocoPhillips (COP - Free Report) was up +1.24% at $112.84. The stock's performance was ahead of the S&P 500's daily loss of 0.51%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 1.47%.
The energy company's stock has climbed by 0.22% in the past month, falling short of the Oils-Energy sector's gain of 0.92% and the S&P 500's gain of 0.53%.
The investment community will be paying close attention to the earnings performance of ConocoPhillips in its upcoming release. The company is slated to reveal its earnings on August 6, 2026. The company's earnings per share (EPS) are projected to be $2.96, reflecting a 108.45% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.59 billion, up 19.36% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.2 per share and a revenue of $66.98 billion, indicating changes of +49.35% and +8.83%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for ConocoPhillips. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 8.28% decrease. ConocoPhillips is currently a Zacks Rank #3 (Hold).
With respect to valuation, ConocoPhillips is currently being traded at a Forward P/E ratio of 12.11. This valuation marks a discount compared to its industry average Forward P/E of 19.39.
We can additionally observe that COP currently boasts a PEG ratio of 1.35. 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. As the market closed yesterday, the Oil and Gas - Integrated - United States industry was having an average PEG ratio of 1.91.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 203, positioning it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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Exxon Mobil (NYSE:XOM | XOM Price Prediction) and ConocoPhillips (NYSE:COP) both closed the books on Q1 2026 against a chaotic oil market: WTI spiked to $114.58 on April 7 after Middle East supply shocks, then collapsed to $71.87 by late June.
Exxon leaned on its integrated machine to absorb the whiplash. Conoco leaned on discipline, buybacks, and a growing LNG book.
Golden Pass Lifts Exxon. Willow Anchors Conoco. Exxon beat on EPS at $1.16 versus $1.0074 expected, though headline net income fell to $4.18 billion after a $3.88 billion derivative timing hit and $706 million in Middle East disruption losses. Strip those out and underlying earnings climbed to $8.77 billion.
Guyana hit a record 900,000 gross barrels per day, refining margins printed $16.3 per barrel, and Golden Pass LNG Train 1 shipped its first cargo in April 2026. CEO Darren Woods framed it plainly: “ExxonMobil is a fundamentally stronger company than it was just a few years ago, built to perform through disruption and across market cycles.”
Conoco delivered adjusted EPS of $1.89 versus $1.7052 expected, a cleaner beat driven by cost management. Realized prices slipped to $50.36 per BOE, down 6% year over year, and adjusted earnings fell to $2.32 billion.
Willow in Alaska crossed 50% completion, and Lower 48 crews more than doubled the share of 3-mile-plus laterals versus a year ago. Ryan Lance emphasized the cash-return promise: “reiterating our objective to return 45% of CFO to shareholders this year.”
Integrated Fortress vs. Focused Producer Exxon runs upstream, refining, chemicals, and specialty products, with emerging bets in hydrogen, lithium, and Proxxima resins. Conoco is a pure E&P plus LNG offtake, sharpened by the Marathon Oil integration and over $1 billion in run-rate synergies.
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Lens Exxon Conoco Core Bet Integrated scale plus LNG and Guyana Low-cost barrels, Willow, Qatar LNG 2026 Capex $27B to $29B $12.0B to $12.5B Buyback Pace $4.9B in Q1, $20B planned $1.0B in Q1 Forward P/E 12 10 Investors have punished both since the April earnings reports. XOM is down 11.3% from April 1. COP is off 14.92% over the same window, a reminder that pure E&P leverage cuts both ways when crude drops 20%.
The Next Test Is Q2 Realizations WTI averaging closer to $71.87 heading into July means Q2 realized prices likely slip further. I will be watching whether Exxon’s $15.6 billion in structural cost savings since 2019 continues to widen the underlying earnings gap versus reported.
For Conoco, the swing factor is Qatar. Guidance already excludes Qatar volumes due to the conflict, so any Strait of Hormuz reopening becomes an upside surprise.
Why I Lean Toward Exxon If Oil Stays Choppy If I had to pick one right now, I would lean toward Exxon. The integrated model, $16.3 per barrel refining margins, and a 43-year dividend growth streak give me something to hold through the noise.
Conoco offers more operating leverage into a crude rebound: 22.1% operating margin, cleaner balance sheet, and the 45% cash-return commitment. Willow and Port Arthur LNG could reprice the story by 2027. If WTI settles above $85 again, I would flip. Until then, Exxon’s diversification looks like the safer path.
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Less than a month in, the US-Iran ceasefire is starting to look like a pause between rounds. Earlier this week, Washington struck more than 80 Iranian targets in response to attacks on three commercial vessels in the Strait of Hormuz, the US Treasury revoked the sanctions waiver that had allowed Iranian oil sales, and Tehran claims it hit back at US bases in Kuwait and Bahrain. Brent climbed 2.7% to $76 a barrel on the news, as reported on Bloomberg’s Daybreak Europe by Abeer Abu Omar.
For a market that had spent the spring pricing in a return to normal after Brent touched $138.21/bbl on April 7, the message is clear. The risk premium is not going anywhere.
The Escalation and Why It Matters Now Before the waiver was pulled, Iran was moving roughly 1% to 2% of global oil supply. That volume now goes offline. LNG traffic has largely stopped transiting the Strait on shipping caution, which rattles the tanker market. The EIA’s May Short-Term Energy Outlook already flagged this scenario, warning that even after flows resume, it will take until late 2026 or early 2027 for most pre-conflict production and trade patterns to resume.
Camille de Courcel of BNP Paribas argued there is “no return to pre-war levels” for oil, and that is precisely why central banks remain cautious.
Energy Stocks Are Repricing the Risk Premium Chevron (NYSE:CVX | CVX Price Prediction) is up 3.7% over the past 5 days, trading around $174.7. That reaction sits atop a Q1 in which CEO Mike Wirth flagged “heightened geopolitical volatility and related supply disruptions,” and Chevron delivered adjusted EPS of $1.41, beating expectations of $0.97. Chevron has direct exposure to Israel through its Tamar and Leviathan gas fields, so the headline risk cuts both ways.
Exxon Mobil (NYSE:XOM) is flat over the past 5 days and 31.56% higher over the past year. Exxon absorbed a $706 million hit tied to Middle East supply disruptions in Q1, disclosed in its May 8-K filing, and CEO Darren Woods argued the company is “built to perform through disruption and across market cycles.” On Reddit’s r/wallstreetbets, retail sentiment on XOM has been running bullish in 7 of 9 snapshots this week, concentrated in a thread titled “What is going on with Oil prices?”
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ConocoPhillips (NYSE:COP) yanked Qatar from its 2026 guidance, a 20 MBOED annual adjustment. The stock is up 3.9% over the past week. Pure-play upstream names carry the cleanest leverage to Brent staying north of $80, though they also carry operational headaches when tankers stop moving.
The counter-play is Marathon Petroleum (NYSE:MPC), whose crude sourcing is “insulated from ongoing Middle East supply pressures.” Marathon is up 69.6% year to date, and Q1 blended refining margins expanded to $17.74 per barrel from $13.38 a year earlier. Refiners gain wider crack spreads when input volatility punishes competitors who cannot pivot.
Then there is Cheniere Energy (NYSE:LNG), which raised 2026 EBITDA guidance to $7.25 to $7.75 billion after exporting a record 187 LNG cargoes in Q1. CEO Jack Fusco argued, “the elevated volatility in global energy markets today further signals the need for additional investment in reliable, secure LNG capacity.” The stock is up 6.69% this week alone.
What This Does to the Rate-Cut Story The Fed has held at up to 3.75% since December 10, 2025, seven months of patience while inflation refused to fully behave. The energy component of PCE ran 24.26% year-over-year in May 2026, a stunning swing from the -3.77% deflation posted in May 2025. Headline PCE is now at 4.07% YoY. Core PCE, at 3.41%, lets doves sleep, arguing the shock is an energy story rather than a wage story. That argument holds only if oil comes down. If Brent camps above $80 and gasoline climbs off the recent $3.78 print, the case for further cuts thins fast. The 10-year Treasury already reflects this.
Watch two things into the back half of July. First, whether Iran actually loses its export flows or finds another gray-market outlet, because that determines how tight the barrel math gets. Second, whether the Fed’s July meeting language shifts on energy pass-through. A ceasefire that cracks moves oil and the entire duration trade underneath every stock in your portfolio.
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ConocoPhillips (COP - Free Report) closed the most recent trading day at $108.02, moving -2.44% from the previous trading session. This move lagged the S&P 500's daily gain of 0.81%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 1.3%.
Prior to today's trading, shares of the energy company had lost 7.67% lagged the Oils-Energy sector's loss of 3.61% and the S&P 500's gain of 1.13%.
The investment community will be paying close attention to the earnings performance of ConocoPhillips in its upcoming release. The company is slated to reveal its earnings on August 6, 2026. The company's earnings per share (EPS) are projected to be $3.04, reflecting a 114.08% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $17.69 billion, indicating a 19.99% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.59 per share and revenue of $67.59 billion, which would represent changes of +55.68% and +9.82%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for ConocoPhillips. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 4.4% lower within the past month. ConocoPhillips is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, ConocoPhillips is presently being traded at a Forward P/E ratio of 11.54. Its industry sports an average Forward P/E of 19.87, so one might conclude that ConocoPhillips is trading at a discount comparatively.
It's also important to note that COP currently trades at a PEG ratio of 1.28. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Oil and Gas - Integrated - United States industry stood at 1.93 at the close of the market yesterday.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 174, placing it within the bottom 30% of over 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.
To follow COP in the coming trading sessions, be sure to utilize Zacks.com.
ConocoPhillips (COP - Free Report) ended the recent trading session at $110.72, demonstrating a +2.1% change from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.28%. Meanwhile, the Dow experienced a drop of 1.09%, and the technology-dominated Nasdaq saw an increase of 0.2%.
The stock of energy company has fallen by 7.15% in the past month, lagging the Oils-Energy sector's loss of 4.3% and the S&P 500's gain of 1.64%.
Analysts and investors alike will be keeping a close eye on the performance of ConocoPhillips in its upcoming earnings disclosure. The company's earnings report is set to go public on August 6, 2026. The company's upcoming EPS is projected at $3.04, signifying a 114.08% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.69 billion, up 19.99% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.57 per share and revenue of $67.59 billion, which would represent changes of +55.36% and +9.82%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for ConocoPhillips. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 4.6% lower. ConocoPhillips is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, ConocoPhillips is presently trading at a Forward P/E ratio of 11.33. This indicates a discount in contrast to its industry's Forward P/E of 19.26.
Also, we should mention that COP has a PEG ratio of 1.26. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Oil and Gas - Integrated - United States industry had an average PEG ratio of 1.92.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
On July 07, 2026, ConocoPhillips (COP) shares rose 4.7% today, bringing the current price to $108.44. The stock has experienced a 52-week range of $85.57 to $13
ConocoPhillips stock remains below pre-Iran war levels despite a very bullish Q2 earnings setup amid strong commodity price tailwinds. Consensus Q2 estimates call for +18.6% sequential revenue growth and +61% sequential EPS growth, yet COP's stock price is unresponsive. Management has maintained disciplined capex, with LNG growth projects in Qatar progressing and Port Arthur LNG adding value.
The Pacer US Cash Cows 100 ETF (CBOE:COWZ) is having a solid 2026, up 6.4% year to date and 14.81% over the past year through July 6. Yet a fund built expressly to own America’s biggest cash machines holds zero shares of Apple, arguably the most famous cash generator on the planet. That contradiction is baked into the methodology.
What COWZ Actually Owns COWZ is issued by Pacer ETFs and tracks the Pacer US Cash Cows 100 Index, which ranks the Russell 1000 by trailing free cash flow yield and buys the top 100 names. The fund had $18.18 billion in net assets as of April 30, 2026, spread across 102 positions. The expense ratio was not disclosed.
The top holdings read like a checklist of mature, cash-generative businesses. Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) sat at the top at 2.67% of net assets, followed by ConocoPhillips (NYSE:COP) at 2.17%, CVS Health (NYSE:CVS) at 2.16%, and Ford Motor (NYSE:F) at 2.01%. Altria, Uber, Bristol-Myers Squibb, Pfizer, Verizon, and AT&T round out the upper ranks.
Why It’s Up The one-year gain traces back to a handful of leaders across sectors. CVS surged 56.84% over the trailing year and is up 30.76% year to date as its Health Care Benefits segment turned a corner. Ford tacked on 22.82% over the past year. QUALCOMM added 17.39% and ConocoPhillips 14.22% in the same window. The heavy tilt toward energy, healthcare, telecom, and consumer staples has done the lifting while high-multiple growth names were absent from the roster.
The Apple Absence, Explained Apple’s absence from a “cash cow” fund traces directly to methodology. Apple generated $98.77 billion in free cash flow in fiscal 2025, one of the largest figures ever produced by a single company. The catch is the denominator. Apple carried a market capitalization of roughly $4.59 trillion, a trailing P/E of 38, and a dividend yield of 0.34%. Divide that enormous cash flow by an even more enormous market value, and Apple’s free cash flow yield lands well below the level required to crack the top 100.
Compare that with a name COWZ does own. QUALCOMM produced $12.82 billion in free cash flow in fiscal 2025 against a market cap near $196.5 billion. Smaller absolute cash flow, dramatically higher yield relative to price. That is the screen doing its job.
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The same logic sweeps out the rest of the Magnificent Seven. Microsoft, Nvidia, Alphabet, Amazon, Meta, and Tesla are also absent from the portfolio, a systematic outcome of the yield-based screen rather than a stock-picker’s judgment call.
What the Exclusion Means for a Portfolio For investors comparing COWZ with a broad market index, the trade-off is direct. Apple gained 15.22% year to date and 46.99% over the past year, both ahead of COWZ. Funds that hold Apple at index weights captured that. COWZ did not. In exchange, holders got heavier exposure to energy producers, healthcare cash generators, telecoms, and older-economy industrials, sectors that behave differently from mega-cap tech in a drawdown.
Concentration risk shifts as well. Without the mega-cap tech anchors, COWZ leans into cyclicals like ConocoPhillips (energy) and Ford (autos, dividend yield 4.49%). Those names typically move with commodity prices, credit conditions, and consumer demand, tracking cyclical rather than AI-driven forces.
The Takeaway COWZ does exactly what it says on the tin: it ranks the Russell 1000 by free cash flow yield and buys the top 100. Because Apple trades at a growth-stock valuation, its cash yield is not high enough to qualify, no matter how many billions it prints. Investors who want a value-tilted, cash-flow-first slice of the U.S. large-cap market may find that appealing. Investors who want mega-cap tech exposure will need to look elsewhere.
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Energy stocks just gave investors a buying window. After WTI crude spiked to $114.58 per barrel on April 7, on the Strait of Hormuz disruption, prices have cooled to $78.94 per barrel as of June 22, dragging the three integrated majors down with them. Exxon Mobil is off 6% over the past month, Chevron is down 8%, and ConocoPhillips has slid 9%. Yet all three crushed Q1 earnings, all three are returning record capital, and the EIA still expects OPEC spare capacity to average just 2.5 million b/d in 2027 following the UAE’s departure from the cartel.
Here are three energy stocks worth examining in July, each filling a distinct portfolio role.
Exxon Mobil (XOM): The Longest Streak, the Safest Coverage Exxon Mobil (NYSE:XOM | XOM Price Prediction) trades around $137 with a market cap near $564 billion. The dividend is the headline: $1.03 quarterly, raised from $0.99 with the February 2026 ex-dividend, extending what is now 43 consecutive years of annual dividend increases. The yield sits at 3%, the lowest of this trio, because Exxon’s payout is the most defensible, backed by a debt/equity of 0.17 and interest coverage of 56x.
Q1 2026 showed why investors pay up. Adjusted EPS came in at $1.16 versus $1.01 expected, a 15% beat marking the fourth consecutive quarter exceeding estimates. Upstream production hit 4.6 million oil-equivalent barrels per day, with Guyana topping a record 900,000 gross bpd. The forward catalyst is liquefied gas: Golden Pass LNG Train 1 shipped its first cargo in April 2026, opening a new earnings stream as global LNG demand absorbs lost Persian Gulf supply.
The forward P/E of 12 against 11 Buy or Strong Buy ratings and a $170.29 analyst target leaves meaningful upside room.
Risk: Exxon’s effective tax rate jumped to 40% in Q1, and mark-to-market derivative timing wiped $3.88 billion off GAAP net income. These distortions can persist if oil keeps swinging.
Chevron (CVX): The Highest Yield, With Hess Synergies Kicking In Chevron (NYSE:CVX) around $169 offers the richest current yield at 4%, after the board raised the quarterly payout to $1.78 from $1.71 effective Feb. 17. That extends a streak of 39 consecutive years of annual increases.
The thesis is post-merger optionality. Q1 adjusted EPS of $1.41 beat the $0.97 estimate by 46%, the sixth straight beat. Worldwide production rose 15% year over year to 3,858 MBOED, fueled by the Hess acquisition, and U.S. output cleared 2 million bpd for the third straight quarter. Management has already hit its initial $1 billion Hess synergy target and is working toward a $3 to $4 billion structural cost reduction by year-end 2026. There is also unpriced optionality: a data-center power JV with Microsoft and Engine No. 1 in West Texas, plus a lithium beachhead in the Smackover Formation. Capital return remains industrial-scale, with $2.5 billion in Q1 2026 buybacks marking the 16th straight quarter above $5 billion of total shareholder returns.
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Risk: Coverage is thinner than Exxon’s. Chevron’s net debt ratio rose to 18% from 16%, and Q1 absorbed roughly $2.9 billion of unfavorable derivative and LIFO timing. The yield is real, but the free cash flow cushion is tighter.
ConocoPhillips (COP): The Cheapest Valuation, the Cleanest Growth Story ConocoPhillips (NYSE:COP) is the pure-play E&P bet and cheapest stock in the group. Shares trade around $105 against a trailing P/E of 18 and a forward P/E of just 10x, both well below integrated peers. The EV/EBITDA of 5.93 is the discount that long-only energy managers tend to pounce on.
Q1 2026 adjusted EPS landed at $1.89 versus $1.69 expected, a 12% beat, even as the realized price slid to $50.36 per BOE, down 6% year over year. The fixed-plus-variable dividend sits at $0.84 for Q2 2026, up from $0.78, and management is committed to returning 45% of cash flow from operations to shareholders in 2026. The growth engine is real: Willow in Alaska reached 50% completion, Port Arthur LNG starts up in the second half of 2026, and the company is targeting $7 billion of incremental free cash flow by 2029.
CEO Ryan Lance summed it up: “We remain focused on delivering our value proposition: operating safely; maximizing our returns on and of capital, reiterating our objective to return 45% of CFO to shareholders this year; and driving peer-leading free cash flow growth.”
Risk: As a pure-play E&P, ConocoPhillips has the highest commodity sensitivity. Management already excluded Qatar from 2026 production guidance of 2.295 to 2.325 MMBOED due to Middle East conflict, and a sustained crude drop below the high $60s would compress the variable dividend fast.
What to Watch in July The EIA expects Brent to average $89 per barrel in Q4 2026 and $79 in 2027 as Middle East production returns. If Strait of Hormuz traffic normalizes faster than expected, ConocoPhillips gets hit hardest and Exxon least. If tensions reignite, the order flips. July earnings season starts the next leg, with all three reporting Q2 numbers in early August. Investors can pick their poison: safety (XOM), income (CVX), or upside leverage (COP).
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Key Takeaways ExxonMobil can continue Permian output with WTI above Midland and Delaware shut-in prices.ExxonMobil aims to grow Permian production to 1.8 million oil-equivalent barrels this year.WTI below $70 remains favorable for Chevron and ConocoPhillips to continue upstream production. Exxon Mobil Corporation (XOM - Free Report) has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing lightweight proppant technology and hence is capable of boosting its well recoveries by up to as much as 20%.
According to the data from the Federal Reserve Bank of Dallas, the shut-in price for existing wells in the Midland, a sub-basin of the Permian, is $42 per barrel. For Delaware, another sub-basin, the Federal Reserve Bank of Dallas estimated the price at $34 per barrel.
With West Texas Intermediate (“WTI”) crude oil trading below the $70 per-barrel mark, significantly higher than the shut-in prices, it makes sense for XOM to continue production in the wells. On the first-quarter earnings call, XOM mentioned that it is on track with its plan of growing its production in the most prolific basin to 1.8 million oil-equivalent barrels this year.
Will CVX & COP Also Gain From the Ongoing Oil?Like XOM, Chevron Corporation (CVX - Free Report) and ConocoPhillips (COP - Free Report) will benefit from the ongoing oil prices. Let’s delve a little deeper.
With COP generating a significant proportion of revenues from crude oil, the ongoing price of the commodity is favorable for the leading upstream player to continue producing, much like other energy giants, such as XOM and CVX.
The upstream energy giant also has low-cost drilling opportunities across the Permian, Eagle Ford and Bakken that could be successfully developed over two decades. Thus, the outlook for ConocoPhillips’ upstream operations looks bright.
Chevron, on the other hand, has been witnessing growth in production volumes, thanks to its footprint in the Permian – the most prolific basin in the United States. CVX is thus well-poised to gain from prevailing oil prices as production makes sense in the Permian.
XOM’s Price Performance, Valuation & EstimatesShares of XOM have gained 22.7% over the past year compared with the 19.8% growth of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA of 9.05X. This is above the broader industry average of 5.87X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2026 earnings has seen downward revisions over the past seven days.
Image Source: Zacks Investment Research
XOM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ConocoPhillips is a global oil giant with operations spanning 14 different countries. Occidental Petroleum recently sold off its chemical business and is pivoting toward high-tech carbon capture technologies.
Crude oil prices cooled off considerably in June. WTI, the primary U.S. oil price benchmark, slumped 20% for the month, closing at $69.50 per barrel. Meanwhile, Brent, the global benchmark, tumbled nearly 25%, closing at just below $73 per barrel. Both oil benchmarks are down more than 30% over the past quarter, their worst three-month period since 2020.
Here’s a look at what fueled the June swoon in crude oil prices and what it means for energy stocks.
Image source: Getty Images.
Working around the global supply crunchCrude oil prices initially soared this year due to the impact of the war with Iran on oil supplies from the Persian Gulf, which accounted for 20% of global oil supplies before the war. Iran attacked ships attempting to transit the Strait of Hormuz, slowing crude oil shipments to a crawl. That created an acute crude oil shortfall, fueling a massive price spike. At one point, oil prices doubled to nearly $120 a barrel.
However, a series of workarounds has helped lessen the impact. Saudi Arabia and the UAE ramped up pipeline volumes to bypass the Strait of Hormuz. Meanwhile, China reduced its oil imports, while the International Energy Agency coordinated an emergency oil release. Additionally, the U.S. military has helped coordinate safe passage for some ships through the Strait. Add in demand destruction from higher prices and higher output from places like the U.S. and Venezuela, and the oil market has worked around the supply problem.
With the U.S. and Iran signing a Memorandum of Understanding last month to reopen the Strait of Hormuz, the oil market is optimistic that oil flows from the Persian Gulf will begin normalizing this summer. That’s driving energy market analysts to lower their crude price forecasts. For example, Morgan Stanley recently lowered its fourth-quarter Brent oil outlook from $80 to $75 a barrel.
Oil companies can still thrive at lower oil pricesHigher oil prices are certainly a boon for oil company profitability. However, most oil companies have focused their efforts on becoming more profitable at lower oil prices.
For example, ExxonMobil (XOM +0.10%) has been undergoing a multiyear transformational strategy to enhance its profitability. It’s taking a two-pronged approach. ExxonMobil has delivered cumulative structural cost savings of $15.6 billion since 2019, and expects to reach $20 billion by 2030. The oil giant is also focusing its capital spending on developing its advantaged assets (the highest-margin and lowest-cost assets). Exxon expects its plan to deliver $25 billion in earnings growth and $35 billion in cash flow growth by 2030 at constant pricing and margins compared to 2024. The plan would also generate $145 billion in cumulative surplus cash over the period at an average Brent price of $65 to support shareholder distributions (dividend increases and share repurchases).
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ConocoPhillips (COP 0.07%) has also built a low-cost resource base. Acquisitions, cost-savings initiatives, and low-cost developments have driven the company’s breakeven level down to the mid-$40s (the average WTI price needed to fund its current capital program). It only needs about $10 more per barrel to fund its dividend. ConocoPhillips expects to drive down its breakeven level to the low-$30s by 2029 by continuing to deliver cost savings and completing its major capital projects. Those initiatives will add $7 billion to its annual free cash flow by 2029 at $70 oil, nearly double last year’s level (and $6 billion if WTI averages $60 a barrel), giving it more money to grow its dividend and repurchase shares.
Crisis avertedThe global energy market navigated a supply crunch caused by Iran’s attempts to close the Strait of Hormuz. That has taken the air out of crude prices, which tumbled 20% last month and are approaching their pre-war levels. While oil companies were cashing in on higher crude prices, most will still thrive at lower prices due to their cost-cutting efforts and high-return growth capital project investments. ExxonMobil and ConocoPhillips both expect to deliver meaningful growth over the next few years at even lower oil prices. That makes these oil stocks look like compelling long-term investment opportunities despite the June swoon in crude prices.
Shell (SHEL +0.95%) recently released its latest outlook for the global liquefied natural gas (LNG) market. The energy giant noted that while the war-driven closure of the Strait of Hormuz will cause LNG demand to flatten out this year, it expects growth to resume in 2027 and rise 65% by 2050.
Here’s a look at Shell’s latest outlook and some LNG stocks capitalizing on this growth trend.
Image source: Getty Images.
A war-driven speedbumpAbout 20% of global LNG volumes flowed through the Strait of Hormuz before the U.S. and Israel launched military strikes against Iran earlier this year. Iran has retaliated by attacking ships trying to exit the Persian Gulf through the Strait of Hormuz, causing a steep drop in LNG traffic. Iran also attacked LNG infrastructure in Qatar, causing damage that could knock out 17% of its capacity for up to five years. ExxonMobil (XOM +0.37%) owned minority interests in two of the damaged LNG trains, while Shell holds a stake in a damaged gas-to-liquids facility.
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U.S. LNG shippers have helped offset some of this supply disruption by ramping up exports, including a record 11.7 million metric tons (MT) in March. Meanwhile, U.S. export capacity got a boost in April when ExxonMobil and its partner QatarEnergy loaded the first cargo at their recently completed Golden Pass terminal.
Despite the surge in U.S. LNG exports, Shell expects that global LNG demand will be similar to last year’s level. That assumes shipping through the Strait of Hormuz returns to normal later this summer.
While Shell sees flat demand this year, it expects growth to return to normal in 2027. It foresees growth continuing through 2050, when demand is projected to reach 700 million tonnes, a 65% increase from 2025 levels. Asia will be the main driver of LNG demand growth. Emerging markets in South and Southeast Asia will increasingly adopt the cleaner-burning fuel in place of coal. Meanwhile, mature markets like Japan will need more LNG to help power data centers.
More LNG investment is neededSeveral energy companies are already building new LNG capacity to meet growing demand. However, Shell estimates that energy companies will need to build around an additional 200 million tonnes of new supply in the 2030s and 2040s to meet growing demand.
Shell is helping lead the charge to build more global LNG capacity. It has joint venture investments in two expansion projects in Qatar: North Field East (NFE) and North Field South (NFS). It also has a minority stake in the Ruwais LNG project in the UAE. Meanwhile, Shell is evaluating an expansion of the recently completed LNG Canada terminal, which it could approve by the end of this year. As an LNG leader, Shell will likely continue to pursue new investments to grow global LNG capacity.
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Meanwhile, LNG is one of ExxonMobil’s long-term growth catalysts. As noted, Exxon and QatarEnergy recently completed the Golden Pass LNG project. It’s also a partner with Shell on QatarEnergy’s NFE project. These projects are key drivers supporting its growth plan to 2030. Additionally, Exxon expects new LNG project start-ups in Papua New Guinea and Mozambique to fuel growth beyond 2030. Exxon is also reportedly evaluating a potential acquisition of Woodside Energy, which has leading LNG operations in Australia and a large-scale LNG development project in the U.S. (Louisiana LNG).
ConocoPhillips (COP +0.09%) is also expanding its global LNG platform. The U.S. oil and gas giant owns interests in the NFS and NFE projects. Additionally, it has an equity interest in Port Arthur LNG (phase 1) and an LNG supply contract for phase 2. The company also has an LNG supply agreement for Rio Grande LNG (Train 5). Those contracts are part of its aspiration to build a 10 to 15 MT per year portfolio of commercial LNG supply contracts from third-party facilities.
Capitalizing on growing global LNG demandWhile LNG demand will flatten out this year due to supply disruptions stemming from the Strait of Hormuz closure, growth should resume next year and continue through 2050. That’s providing Shell, ExxonMobil, ConocoPhillips, and other large energy companies with multiple LNG investment opportunities. These investments should help fuel their growth in the coming decades, making them compelling energy stocks to buy and hold for the long term.
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Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
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Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: ConocoPhillips (COP - Free Report) Headquartered in Houston, TX, ConocoPhillips is primarily involved in the exploration and production of oil and natural gas. Considering proved reserves and production, the company is among the largest explorers and producers in the world. The company, founded in 1875, has a strong presence across conventional and unconventional plays in 13 countries. ConocoPhillips’ low-risk and cost-effective operations are spread across North America, Asia, Australia and Europe.
COP is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 10.56; value investors should take notice.
For fiscal 2026, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.19 to $10.03 per share. COP boasts an average earnings surprise of +5.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, COP should be on investors' short list.
Even with crude oil dipping to around $70 a barrel, ConocoPhillips (COP 0.42%) and BP (BP 1.56%) offer compelling setups for investors focused on structural efficiency, resilient cash flow, and shareholder returns. Their shares are down more than 14% and 11% over the past month, respectively, providing a good buying opportunity for investors with a long-term view.
Here are five reasons why these two energy giants remain resilient and highly attractive buys in a sub-$70 pricing environment.
Image source: Getty Images.
1. Ultra-low breakeven costs keep them profitable Neither oil company needs triple-digit oil to keep the lights on or to make serious money. Following its 2024 acquisition of Marathon Oil, ConocoPhillips has aggressively reduced its structural supply costs. The company explores for, produces, transports, and markets crude oil, bitumen, natural gas, natural gas liquids (NGLs), and liquefied natural gas (LNG) across 14 countries.
A substantial portion of its premier acreage, particularly in the Permian, Eagle Ford, and Bakken basins, has kept its cost of supply below $40 per barrel for decades. Because most of its production is in the Lower 48 states, the company isn't as affected by the unrest in the Middle East.
BP, driven by aggressive corporate restructuring and a target of $6.5 billion to $7.5 billion in structural cost reductions through 2027, has engineered its portfolio to comfortably sustain operations and cover its base dividend.
The company maintained strong production in the first quarter, and refining throughput was more than 1.5 million barrels per day, its highest quarterly figure in four years. Replacement cost profit per share was $20.67, up 136% year over year.
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2. Aggressive corporate cost-cutting and synergies Both management teams adapt easily to lower prices by tightening their capital belts, prioritizing structural efficiency over unbridled production growth. ConocoPhillips is actively executing a $1 billion capital and operating cost-reduction program for 2026. This builds directly on the post-merger integration synergies from Marathon.
BP is tightly capping its annual capital expenditure between $13 billion and $13.5 billion, prioritizing high-margin upstream developments and major discoveries, such as its massive Bumerangue find off the coast of Brazil, over low-margin barrels.
3. Solid shareholder returns When oil prices soften, these companies shift their excess cash straight back to investors rather than burning it on expensive new drilling projects. They both have excellent dividends, with BP's yielding 5.3% and ConocoPhillips' yielding 3.1% at their current share prices.
ConocoPhillips, in the first quarter, said it remains committed to returning 45% of its cash from operations (CFO) to shareholders via a competitive mix of base dividends, variable return of cash (VROC), and share repurchases.
BP continues to prioritize a rock-solid base dividend alongside targeted share buybacks, supported by a three-year asset divestment program expected to generate $20 billion by 2027. The company just completed a $500 million share buyback program.
The combination of dividends and share buybacks contributes to solid total returns for the stocks. Over the past decade, BP stock has returned more than 93%, and ConocoPhillips has returned more than 220%.
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4. Valuation discounts and sector diversification Buying into the price dip for BP and ConocoPhillips allows investors to capture distinct, complementary business models at a discount. The two stocks are trading below 11 times forward earnings (ConocoPhillips) and below 8 times forward earnings (BP).
ConocoPhillips is an exploration and production powerhouse. Because it lacks a refining arm, it offers the cleanest, most efficient operating leverage to the eventual rebound of crude prices.
BP, on the other hand, provides an integrated safety net. When crude prices fall, its downstream customers and products division, which includes refining, marketing, and retail, historically captures higher profit margins, effectively acting as an internal hedge against lower raw commodity prices.
5. Demand will ramp up as countries restock In the short term, crude oil prices may initially continue to drop as oil producers ramp up exports once the Strait of Hormuz is fully reopened. However, major economies are likely to move to restock their heavily depleted oil reserves, such as rebuilding the U.S. Strategic Petroleum Reserve (SPR), which is at its lowest level since 1983, and refilling commercial stockpiles drained during recent Middle East supply crunches.
In many cases, the companies these economies will turn to are those with stable oil production outside the Middle East, and BP and ConocoPhillips, with the vast majority of their production concentrated in North America, Europe, and other non-Middle Eastern regions, should benefit.
ConocoPhillips (NYSE: COP) will host a conference call webcast on Thursday, Aug. 6, 2026, at 12:00 p.m. Eastern time to discuss second-quarter 2026 financial a
ConocoPhillips (COP - Free Report) closed at $106.92 in the latest trading session, marking a -2.77% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.1% for the day. On the other hand, the Dow registered a gain of 0.35%, and the technology-centric Nasdaq decreased by 0.43%.
Heading into today, shares of the energy company had lost 5.66% over the past month, outpacing the Oils-Energy sector's loss of 7.58% and lagging the S&P 500's loss of 1.34%.
Market participants will be closely following the financial results of ConocoPhillips in its upcoming release. It is anticipated that the company will report an EPS of $2.99, marking a 110.56% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $17.05 billion, up 15.71% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.03 per share and a revenue of $66.52 billion, representing changes of +62.82% and +8.08%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ConocoPhillips. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.17% higher. ConocoPhillips is currently a Zacks Rank #3 (Hold).
Looking at its valuation, ConocoPhillips is holding a Forward P/E ratio of 10.96. For comparison, its industry has an average Forward P/E of 18.61, which means ConocoPhillips is trading at a discount to the group.
Investors should also note that COP has a PEG ratio of 1.22 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. COP's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 179, this industry ranks in the bottom 27% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
On Feb. 27, oil markets closed with West Texas Intermediate (WTI) crude oil at about $67 a barrel, and a share of ConocoPhillips (COP 2.77%) could be bought for less than $113.
As of June 22, WTI costs just a little more than $74 a barrel -- 10% more expensive -- while Conoco stock has fallen below $110, 2.5% cheaper than four months ago.
And I ask you: Does this make sense?
Image source: Getty Images.
How risky does the world feel to you? Consider the situation in the Persian Gulf right now. Six weeks of fighting ended (sort of) with a ceasefire announced on April 8, followed by a "memorandum of understanding" officially ending the conflict on June 17. As of today, the U.S. naval blockade of Iran has ended, and the Strait of Hormuz is open (except when it isn't).
Does all of this feel only 10% more dangerous to you than how things stood on Feb. 27?
Because the world feels about twice as dangerous, and oil prices about twice as uncertain -- and I'm about as confident in the prospects for lasting peace in the Mideast as I've ever been.
Which is to say, not confident at all.
How likely is it that oil prices stay low? Oil today costing only 10% more than it did four months ago makes little sense given:
The continued perilous situation in the Gulf The depleted state of oil reserves around the world after being denied resupply from the Gulf for the past four months And the tens of billions of dollars of damage done to oil production facilities in the Gulf nations, which will have to be repaired (and those repairs paid for), and which will slow oil production Going forward, I expect the wartime trend of countries cutting back on oil use to conserve supplies will reverse now that oil is flowing (somewhat) again, thereby increasing demand. Turbocharging this trend will be countries that drained their reserves during the war, attempting to restock supplies now that the war is subsided This added demand is likely to drive oil prices even higher.
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What this means for ConocoPhillips stock All of this is good news for ConocoPhillips stock.
Priced at $133.6 billion in market capitalization today, Conoco stock trades for about 18.3 times trailing earnings. Even with a 3.1% dividend yield, this seems expensive if Conoco's earnings over the next five years grow only at the 10% rate that Wall Street analysts forecast (according to data from S&P Global Market Intelligence). These analysts expect Conoco's earnings to fall next year, however -- which is the opposite of what I think will happen. If oil prices instead rise as I expect, Conoco's earnings could outperform estimates.
And Conoco stock could be even cheaper than it looks.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends ConocoPhillips. The Motley Fool has a disclosure policy.
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Phillips 66?The final step today is to look at a stock that meets our ESP qualifications. Phillips 66 (PSX - Free Report) earns a #2 (Buy) 30 days from its next quarterly earnings release on July 24, 2026, and its Most Accurate Estimate comes in at $6.99 a share.
Phillips 66's Earnings ESP sits at +14.21%, which, as explained above, is calculated by taking the percentage difference between the $6.99 Most Accurate Estimate and the Zacks Consensus Estimate of $6.12. PSX is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
PSX is part of a big group of Oils and Energy stocks that boast a positive ESP, and investors may want to take a look at ConocoPhillips (COP - Free Report) as well.
Slated to report earnings on August 6, 2026, ConocoPhillips holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $3.42 a share 43 days from its next quarterly update.
ConocoPhillips' Earnings ESP figure currently stands at +14.26% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.99.
PSX and COP's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
On June 18, 2026, ConocoPhillips COP shares fell 3.1% to a current price of $107.74. The shares have experienced a decline of 13.5% over the past month, with a year-to-date increase of 16.9%. The stock has traded within a 52-week range of $85.57 to $135.87.
GF Value™ verdict: The stock is currently trading at $107.74, which is 2.0% below the GF Value™ estimate of $109.98.GF Score™: ConocoPhillips has a GF Score™ of 69/100, indicating an above-average rating.Most notable signal: Insider activity shows that insiders sold $81.6 million worth of shares in the last three months, with no buying activity. Is COP Overvalued or Undervalued? ConocoPhillips' current share price of $107.74 represents a slight discount of 2.0% compared to the GF Value™ of $109.98. This indicates a marginal margin of safety, suggesting that the stock is fairly valued according to GF Value™. However, the stock's recent performance and insider selling could warrant caution. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Given that the GF Valuation label indicates the stock is fairly valued, it presents a modest opportunity for value-seeking investors. However, potential buyers should consider the recent decline in share price and the lack of insider buying as signals that may reflect some underlying concerns about the company's future performance. Therefore, while there is a slight undervaluation according to GF Value™, investors need to weigh these risks carefully.
How Does COP's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 18.3x 12.5x Forward P/E 10.6x N/A The current P/E (TTM) of 18.3x is significantly above the 5-year median P/E of 12.5x, reflecting a 46% premium. This analysis indicates that ConocoPhillips is trading above its historical valuation, which contradicts the GF Value™ verdict of being fairly valued.
What Does COP's GF Score™ Tell Us? Metric Rating GF Score™ 69 Financial Strength 6/10 Profitability 7/10 Growth 4/10 Valuation 7/10 Momentum 2/10 The GF Score™ of 69/100 indicates that ConocoPhillips ranks above average, with the strongest performance seen in Profitability (7/10) and Valuation (7/10). However, the company's Growth rank of 4/10 and Momentum rank of 2/10 highlight areas of concern, particularly in terms of its recent stock performance and growth potential.
What Are Insiders Doing with COP Stock? Recent insider activity has shown a notable trend, with insiders selling a substantial $81.6 million in shares over the last three months without any buying activity. This pattern may suggest a lack of confidence in the stock's short-term prospects from those closest to the company.
The absence of insider buying can be seen as a red flag, indicating that insiders may not believe the stock is undervalued or poised for immediate recovery, which adds to the caution that potential investors should exercise.
What This Means for Investors Based on the analysis of GF Value™, ConocoPhillips appears to be fairly valued at the current price of $107.74. While there is a slight margin of safety, the high P/E ratio relative to historical valuations and recent insider selling suggests potential caution for investors considering this stock.
For the complete analysis, visit the ConocoPhillips COP stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is COP's GF Score™?
COP has a GF Score™ of 69/100, indicating that it ranks above average based on key aspects such as financial strength, profitability, and valuation.
Is COP overvalued or undervalued?
According to GF Value™, COP is fairly valued at its current price of $107.74, with a slight margin of safety of 2.0% below its estimated intrinsic value.
What is COP's P/E ratio?
The current P/E (TTM) ratio for COP is 18.3x, which is significantly higher than its 5-year median P/E of 12.5x, indicating that it is trading above its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
ConocoPhillips (COP - Free Report) closed at $107.74 in the latest trading session, marking a -3.12% move from the prior day. This move lagged the S&P 500's daily gain of 1.09%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 1.91%.
The stock of energy company has fallen by 9.11% in the past month, lagging the Oils-Energy sector's loss of 7.57% and the S&P 500's gain of 0.29%.
Investors will be eagerly watching for the performance of ConocoPhillips in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.72, reflecting a 91.55% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $17.05 billion, up 15.71% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.03 per share and a revenue of $66.52 billion, signifying shifts of +62.82% and +8.08%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for ConocoPhillips. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.19% increase. As of now, ConocoPhillips holds a Zacks Rank of #3 (Hold).
Looking at its valuation, ConocoPhillips is holding a Forward P/E ratio of 11.09. This indicates a discount in contrast to its industry's Forward P/E of 19.17.
One should further note that COP currently holds a PEG ratio of 1.23. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Oil and Gas - Integrated - United States stocks are, on average, holding a PEG ratio of 1.95 based on yesterday's closing prices.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 191, positioning it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow COP in the coming trading sessions, be sure to utilize Zacks.com.
While the hopes for a permanent cease-fire and a cessation of hostilities are the ultimate end-game plan for Iran and the Middle East, the reality is that while spot prices have plummeted to the lowest level since March, there will be an incredible amount of work and resources to put the supply chain and the storage market back to pre-war levels. Given those challenges, many on Wall Street expect energy complex pricing to be higher than they had projected. In fact, before the war with Iran, estimates for Brent crude ranged from $50 to $60 for 2026; now those numbers are anywhere from $60 to $80 for 2026, and about the same for 2027, depending on which bank you put your chips on. The reality is that energy, which has outperformed recently, may continue that streak for the rest of this year and into 2027.
We read an interesting piece from Morning Bullets, which noted that while oil closed the week lower, with WTI under pressure, you shouldn’t let that headline drop mislead you. A busier Strait of Hormuz, layered with shifting restrictions and rising tensions, is precisely the kind of setup where one unexpected incident can rapidly escalate into a full-blown pricing shock. Delays compound, insurance costs surge, tankers reroute, and suddenly the market is scrambling for immediate barrels. This dynamic also explains why energy equities often decouple from crude prices. The sector isn’t just trading the spot or front-month contract; it’s pricing the full distribution of potential outcomes. When tail risks increase, high-quality producers and midstream assets with strong, resilient cash flows can attract aggressive buying, even as futures drift sideways or lower.
We decided to screen our 24/7 Wall St. energy stock database, looking for companies that still deliver large and dependable dividends while remaining good investments on a valuation basis. We remain quite positive on the mega-cap integrated giants; they have had spectacular runs, but all have pulled back sharply from the late March highs and are offering tremendous entry points and dividend yields.
Six companies that offer shareholders some of the best valuations currently are at the top of our strong buy list for investors. All still offer outstanding upside potential to the posted Wall Street target prices. All six are also rated Buy at the top Wall Street firms we cover at 24/7 Wall St.
Why do we cover the high-yielding energy dividend stocks?
Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past 50 years (1973 to 2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Integrated Oil Mega-Caps Chevron Chevron (NYSE: CVX | CVX Price Prediction) is an American multinational energy company primarily focused on oil and gas. This integrated giant is a safer option for investors looking to position themselves in the energy sector and pays a substantial 3.84% dividend, which was raised by 5% earlier this year. Chevron operates integrated energy and chemicals businesses worldwide through its two segments.
The Upstream segment is involved in the following:
Exploration, development, production, and transportation of crude oil and natural gas Processing, liquefaction, transportation, and regasification associated with liquefied natural gas Transportation of crude oil through pipelines, and transportation and storage Marketing of natural gas, as well as operating a gas-to-liquids plant The Downstream segment engages in:
Refining crude oil into petroleum products Marketing crude oil, refined products, and lubricants Manufacturing and marketing renewable fuels Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.
Chevron completed its $53 billion acquisition of Hess in July 2025. The merger went forward following a favorable arbitration outcome against Exxon Mobil regarding Hess’s lucrative offshore oil assets in Guyana. The purchase has strengthened an already solid balance sheet and earnings.
Mizuho has an Overweight rating and a price target of $230.
ConocoPhillips The big always gets bigger, and this company completed a $22.5 billion purchase of Marathon Oil in November of 2024. This deal added high-quality assets, particularly in the Eagle Ford and Bakken shales, to the company’s portfolio. ConocoPhillips (NYSE: COP) is an exploration and production company with a rich dividend yield of 2.77%.
Its Alaska segment primarily explores for, produces, transports, and markets crude oil, natural gas, and NGLs. The Lower 48 segment comprises operations in the 48 contiguous states of the United States and the Gulf of Mexico. Canadian operations consist of the Surmont oil sands development in Alberta, the liquids-rich Montney unconventional play in British Columbia, and commercial operations.
The Europe, Middle East, and North Africa segment consists of operations principally located in:
The Norwegian sector of the North Sea The Norwegian Sea Qatar Libya Equatorial Guinea The United Kingdom The Asia Pacific segment has exploration and production operations in China, Malaysia, and Australia, as well as commercial operations in China, Singapore, and Japan. The Other International segment includes interests in Colombia as well as contingencies associated with prior operations in other countries.
Jefferies has a Buy rating with a $161 target price.
Exxon Mobil Exxon Mobil (NYSE: XOM) manages an industry-leading portfolio of resources and is one of the world’s largest integrated fuels, lubricants, and chemical companies. The decline in oil prices presents investors with an excellent entry point, and they will likely seize the opportunity to secure a strong 2.87% dividend yield. Exxon is the world’s largest international integrated oil and gas company, exploring for and producing crude oil and natural gas in North and South America, Europe, Africa, Asia, and elsewhere.
Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene, and polypropylene plastics, as well as specialty products. Additionally, the company transports and sells crude oil, natural gas, and petroleum products.
Top Wall Street analysts expect the company to remain a key beneficiary in a higher oil price environment, and most remain optimistic about the company’s sharp positive inflection in capital allocation strategy. The upstream portfolio offers leverage to a further demand recovery, and Exxon offers greater Downstream/Chemicals exposure than its peers.
Exxon completed its purchase of oil shale giant Pioneer Natural Resources in 2024 in an all-stock transaction valued at $59.5 billion. The deal created the largest U.S. oilfield producer and guarantees a decade of low-cost production.
Barclays has an Overweight rating on the shares, with a $182 target price.
High-Yielding Midstream MLPs Energy Transfer Energy Transfer (NYSE: ET) is one of North America’s largest and most diversified midstream energy companies. This top master limited partnership is a safe option for investors seeking energy exposure and income, as the company pays a 7.06% distribution yield. Energy Transfer owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint across all major domestic production basins.
The company is a publicly traded limited partnership with core operations that include:
Complementary natural gas midstream, intrastate, and interstate transportation and storage assets Crude oil, natural gas liquids (NGL), and refined product transportation and terminalling assets NGL fractionation Various acquisition and marketing assets Following the acquisition of Enable Partners in December 2021, Energy Transfer owns and operates over 114,000 miles of pipelines and related assets in 41 states, spanning all major U.S. producing regions and markets. This further solidifies its leadership position in the midstream sector. Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG; the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco (NYSE: SUN); and the public partner interests and 39.7 million standard units of USA Compression Partners (NYSE: USAC).
Jefferies has a Buy rating on the shares, with a $23 target price.
Enterprise Products Partners This top midstream giant is an American midstream natural gas and crude oil pipeline company headquartered in Houston, Texas. Enterprise Products Partners (NYSE: EPD) is one of the most extensive publicly traded energy partnerships, paying a reliable 5.88% dividend. The company’s debt-to-EBITDA ratio ranges from 3.1x to 3.4x, which is moderate for a midstream energy company, and its interest coverage ratio is 5x. It generates strong free cash flow, with an operating cash flow of approximately $8.8 billion, resulting in approximately $4.2 billion in free cash flow annually after deducting capital expenditures. Another significant benefit for shareholders is that most of the corporate debt is fixed-rate, thereby limiting the risk of rising interest rates.
Enterprise Products Partners provides various midstream energy services, including:
Gathering Processing Transporting and storing natural gas, natural gas liquids (NGL), and fractionation Import and export terminalling Offshore production platform services The company has four reportable business segments:
Natural Gas Pipelines and Services NGL Pipelines and Services Petrochemical Services Crude Oil Pipelines and Services One reason many analysts like the stock might be its distribution coverage ratio. The company’s coverage ratio is well above 1x, making it relatively less risky among the MLPs.
UBS has a Buy rating with a $45 price objective.
MPLX MPLX (NYSE: MPLX) is a diversified, large-cap master limited partnership formed by Marathon Petroleum. This company is one of the top holdings in the Alerian MLP Energy Exchange-Traded Fund and pays a healthy 7.46% dividend. The company is primarily engaged in transporting crude oil and refined products, with terminals in the U.S. Midwest and Gulf Coast regions, and in natural gas gathering and processing in the Northeast, following its 2015 acquisition of MarkWest Energy.
The company’s assets include:
Network of crude oil and refined product pipelines Inland marine business Light-product terminals Storage caverns Refinery tanks Docks Loading racks and associated piping Crude and light-product marine terminals MPLX also owns:
Crude oil and natural gas gathering systems Pipelines, natural gas, and NGL processing and fractionation facilities in key U.S. supply basins Wells Fargo has a $61 target price to accompany its Overweight rating.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Considering buying COP stock? Here’s what analysts think:
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Forget about the Permian Basin, Guyana, or other oil-rich regions that integrated oil and gas companies have been actively exploring in recent years. Oil and gas giant ConocoPhillips (NYSE: COP) is setting its sights north, far north, to Alaska's North Slope.
While Alaska has been a major oil exploration spot for decades, ConocoPhillips is not pouncing on some run-of-the-mill opportunity. Instead, the company has made this multibillion-dollar project a key component of its cash flow growth strategy.
If successful, this project, known as Willow, could produce billions in incremental cash flow by 2029. Coupled with other efforts, this dramatic surge in profitability could bode well for ConocoPhillips, one of the most widely followed oil stocks.
Image source: Getty Images.
ConocoPhillips and its Willow gambit Expected to cost up to $9 billion, ConocoPhillips' Willow project is the largest Alaskan North Slope energy exploration project in more than 20 years. While the price tag may seem hefty, the potential upside in crude oil production could be substantial. Company forecasts call for peak production of 180,000 barrels per day, with the site ultimately producing over 600 million barrels of recoverable oil.
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Although not expected to come online until early 2029, management expects it to have an immediate impact on profitability. Since last year, the company has touted it as the sort of grand finale of its efforts to increase annual cash flow between 2025 and the decade's end.
As discussed in communications to investors, ConocoPhillips remains "well positioned to deliver an expected $7 billion in incremental free cash flow by 2029, including $1 billion each year from 2026 through 2028."
In other words, the company expects to wring out $3 billion in additional cash flow through standard cost-reduction measures, with the remaining $4 billion covered by cash flows from the Willow project.
Does this put shares in the buy zone? Considering ConocoPhillips reported operating cash flow of $19.8 billion in 2025, an incremental $7 billion within three years is quite an improvement. Not only would this increased cash flow likely lead to further dividend growth, but it would also likely continue or even expand the company's share repurchase program.
Assuming much of this cash flow also hits the bottom line, it'll likely serve as an upward driver for ConocoPhillips shares. Trading for around 11 times forward earnings, a slight discount to peers such as ExxonMobil, one can argue that investors have yet to even partially factor in the potential upside from the Willow project.
There may be a good reason for this. ConocoPhillips' forecasts hinge heavily on crude oil staying above $70 per barrel. Oil markets can be unpredictable. It's unclear how factors like geopolitics and global economic health impact energy prices, positively or negatively, four years out.
Nevertheless, while only time will tell whether ConocoPhillips' Willow gambit pays off, consider it a strong potential catalyst, atop a myriad of strengths. Besides a reasonable valuation, ConocoPhillips is also one of the top dividend oil stocks, with a 2.9% forward dividend, and over the past five years has experienced double-digit annual dividend growth.
Considering all factors, shares appear to be in the buy zone at current prices.
A drone view shows the Conoco gas plant after it came under the control of the Syrian government following the withdrawal of the U.S.-backed Syrian Democratic Forces (SDF), in the countryside... Purchase Licensing Rights, opens new tab Read more
CompaniesDAMASCUS, June 16 (Reuters) - The Syrian Petroleum Company, U.S.-based ConocoPhillips (COP.N),and energy firm Novaterra signed a deal in Damascus on Tuesday to develop new gas fields and expand production at existing fields, according to a joint statement.
Syria's energy infrastructure was ravaged by the country's nearly 14-year civil war and now produces only a fraction of the electricity it needs. Domestic natural gas production is estimated to have declined to 3 billion cubic metres in 2023 from 8.7 bcm in 2011.
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The three companies signed a memorandum of understanding in November to expand cooperation in the gas sector.
Syrian Energy Minister Mohamed al-Bashir said on Tuesday the deal aimed to improve the stability of Syria's electricity network and contribute to the country's economic recovery. He did not say which fields specifically were included.
"We were in country a number of decades ago, and this represents the re-entry of our company back into Syria in partnership with NovaTerra," Ryan Lance, Chairman and CEO of ConocoPhillips, said at a news conference in Damascus.
"We hope to grow the gas production in the country, and I hope that that expands beyond that to something even more significant for our company and more significant for the country of Syria," Lance said.
ConocoPhillips worked in Syria until about two decades ago. In May, it signed a deal with French oil major TotalEnergies (TTEF.PA), QatarEnergy and the Syrian Petroleum Company to launch a technical review of the offshore Block 3 area near the Syrian coastal city of Latakia.
Alex Macdonald, CEO of Novaterra Energy, told reporters in Damascus the company would be providing "training and providing access to cutting-edge software and technology" to build its operations in Syria.
Syrian President Ahmed al-Sharaa later hosted Lance, Macdonald and Syrian businessman Ayman Asfari, who is listed as a director of Novaterra, at the presidential palace.
The CEO of the Syrian Petroleum Company Youssef Qabalawi said last year that the deal would aim to increase gas output by 4 to 5 million cubic metres per day within a year.
Reporting by Firas Makdesi, Writing by Maya Gebeily; Editing by Sanjeev Miglani
Our Standards: The Thomson Reuters Trust Principles., opens new tab
A screen displays the logo for ConocoPhillips on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 6, 2022. REUTERS/Brendan McDermid Purchase Licensing Rights, opens new tab
CompaniesJune 15 (Reuters) - U.S. oil and gas producer ConocoPhillips (COP.N), opens new tab is set to sign a contract with Syria's new government to revive gas production, the Financial Times reported on Monday, citing two people familiar with the matter.
ConocoPhillips and Novaterra Energy will develop existing gas fields and explore for new reserves, under an agreement with state-owned Syrian Petroleum Company, the report added.
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The potential deal, which builds on a November memorandum of understanding (MoU) signed, is expected to be signed this week, FT reported.
ConocoPhillips did not immediately respond to a Reuters request for comment.
French oil major TotalEnergies (TTEF.PA), opens new tab, QatarEnergy (QATPE.UL) and ConocoPhillips signed a deal with Syrian Petroleum Company in May to launch a technical review of the offshore Block 3 area near Latakia.
The MoU established a framework for discussing commercial exploration. It is part of a broader government push to attract foreign investment into Syria's energy sector, battered by years of civil war and sanctions.
Interest among energy majors for new Syrian projects has grown since Bashar al-Assad's ouster in late 2024.
Reporting by Sumit Saha and Pritam Biswas in Bengaluru; Editing by Anil D'Silva and Joyjeet Das
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Oil prices crashed again Monday morning, with Brent crude futures falling 5.6% and WTI down 5.9% through 10:40 a.m. ET.
As you'd expect, oil stocks are following oil prices lower, with ConocoPhillips (COP 3.86%) stock down 3.9% -- but here's the thing: A 3.9% drop in Conoco stock is a lot less than a 5.9% drop in Brent prices, for example.
So why isn't Conoco stock down even more?
Image source: Getty Images.
Peace in the Middle East Let's start with the obvious: why oil prices are dropping at all today. Over the weekend, President Trump announced he has reached a peace deal with Iran. The Strait of Hormuz will open toll-free, and the U.S. naval blockade on Iran will simultaneously cease, and "oil will flow on both ends again for the Region, and the World!"
Statements from Iran confirm the peace deal and that fighting will cease "immediately and permanently." Oil investors are selling their shares in anticipation that greater oil supplies will rebalance supply with demand, causing prices -- and profits -- to drop.
This may be exactly what happens next.
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What this means for ConocoPhillips Or it may not.
Media reports on the peace deal, which won't be officially signed until Friday, conflict or omit multiple details, for example, on how (or if) Iran's stockpiles of enriched uranium will be seized and disposed of, and whether the U.S. will pay reparations or unfreeze Iranian foreign assets as part of the deal.
Until these details are firmed up -- and acted upon -- it's difficult to call the conflict really over. And there's always the possibility that a peace deal will be violated and the Strait will be bottled up all over again.
Long story short, oil prices and Conoco's stock price are both down today. There's no guarantee either one will stay down for long.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends ConocoPhillips. The Motley Fool has a disclosure policy.
In the latest close session, ConocoPhillips (COP - Free Report) was up +1.4% at $116.98. The stock's performance was ahead of the S&P 500's daily gain of 0.5%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.31%.
Heading into today, shares of the energy company had lost 3.03% over the past month, lagging the Oils-Energy sector's loss of 2.9% and the S&P 500's loss of 0.23%.
Investors will be eagerly watching for the performance of ConocoPhillips in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.72, marking a 91.55% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.05 billion, up 15.71% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.03 per share and revenue of $66.52 billion, indicating changes of +62.82% and +8.08%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ConocoPhillips. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 4.27% higher. ConocoPhillips is currently a Zacks Rank #3 (Hold).
Looking at valuation, ConocoPhillips is presently trading at a Forward P/E ratio of 11.5. This represents a discount compared to its industry average Forward P/E of 19.81.
One should further note that COP currently holds a PEG ratio of 1.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Oil and Gas - Integrated - United States industry had an average PEG ratio of 2.01.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 199, placing it within the bottom 19% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Key Takeaways WTI crude above $90 keeps ExxonMobil and ConocoPhillips in focus as investors chase energy stocks.XOM targets 1.8M oil-equivalent barrels from the Permian, using lightweight proppant to lift recoveries.ConocoPhillips has low-cost drilling in Permian, Eagle Ford and Bakken; its debt-to-cap is 26.55%. Oil prices remain in bullish territory, keeping energy companies in the spotlight. Many investors are looking to capitalize on elevated oil prices by betting on energy stocks. Against this backdrop, let us compare two energy giants, Exxon Mobil Corporation (XOM - Free Report) and ConocoPhillips (COP - Free Report) , to determine which stock offers a better buying opportunity now.
High Oil Price to Aid Upstream Operations of XOM, COPWest Texas Intermediate (“WTI”) crude is trading at more than the $90-per-barrel mark. The high price is being backed by ongoing tensions in the Middle East. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $85.68 per barrel for this year, higher than $65.40 last year. A highly favorable pricing environment for the commodity is likely to continue supporting ExxonMobil's exploration and production activities, which contribute to the majority of its earnings.
To provide a glimpse of the upstream assets, the company has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing lightweight proppant technology and hence is capable of boosting its well recoveries by up to as much as 20%. On the first quarter earnings call, XOM mentioned that it is staying aligned with its plan of growing its production in the most prolific basin to 1.8 million oil equivalent barrels this year.
In Guyana, XOM has made several oil and gas discoveries, further highlighting its solid production outlook. Record production from both resources has been aiding its top and bottom lines. In both resources, the breakeven costs are low.
With its solid portfolio of upstream assets, COP is well-positioned to gain. The upstream energy giant has low-cost drilling opportunities across Permian, Eagle Ford and Bakken that could be successfully developed over two decades. The outlook for ConocoPhillips’ upstream operations also looks highly profitable.
Low Debt Burden of XOM & COP a Savior During UncertaintyBoth ConocoPhillips and XOM have strong balance sheets that they could rely on during an unfavorable business environment. The debt-to-capitalization of ExxonMobil is only 15.44%, lower than COP’s 26.55%.
Image Source: Zacks Investment Research
Thus, both the energy giants could rely on their balance sheet strengths to run their operations smoothly when the business scenario turns unfavorable.
XOM vs. COP: Which is a Better Stock?Coming to the price chart, both ExxonMobil and ConocoPhillips have had a strong run-up over the past year. Over the period, XOM has jumped 50.3%, while COP gained 41.4%.
Image Source: Zacks Investment Research
On a relative basis, XOM is trading at a 10.24x trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA), which is a discount compared with COP’s 6.59x.
Image Source: Zacks Investment Research
Thus, it has become evident that investors are willing to pay a premium for XOM over COP. This is because, although both XOM and COP are benefiting from the ongoing strength in oil prices, being an integrated energy player with a footprint in refining and chemicals businesses, ExxonMobil’s operation is relatively more stable, making it a better investment pick. Currently, XOM sports a Zacks Rank #1 (Strong Buy).
However, investors willing to take on more risk to capitalize primarily on high oil prices may consider ConocoPhillips, which currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways COP targets $7B more free cash flow by 2029 from LNG, Willow, and cost-cutting efforts.ConocoPhillips' Port Arthur LNG project is on track to ship its first LNG cargo in 2027.COP extended Equatorial Guinea LNG's operational life into the 2030s, poised to serve Europe & Asia demand. ConocoPhillips (COP - Free Report) is a leading upstream energy company with operations spread across the globe. The company boasts a diverse, capital-efficient and low-cost-of-production asset base that is expected to significantly enhance its free cash flow profile in the coming years. COP has highlighted that it is currently working toward delivering a $7 billion improvement in free cash flow by 2029, driven by its cost-reduction initiatives, liquefied natural gas (LNG - Free Report) projects and the Willow Project in Alaska.
Notably, ConocoPhillips is strengthening its position in the global LNG market through strategic infrastructure investments. The current geopolitical tensions in the Middle East have tightened global LNG markets, driven by QatarEnergy’s production shut-in and disruptions to energy flows through the Strait of Hormuz. This has significantly improved the outlook for COP’s LNG portfolio.
One of COP’s key growth drivers is the Port Arthur LNG project, which is progressing steadily and is on track to deliver its first LNG cargo in 2027. It is also focused on expanding its international LNG footprint through its Equatorial Guinea LNG operations. The company recently executed a third-party tolling agreement, extending the facility’s operational life into the 2030s. Additionally, the asset is located in a gas-rich region, with discovered resources in its vicinity that support its long-term production potential. The Equatorial Guinea LNG asset is geographically well-positioned to ship LNG cargoes to high-demand markets like Europe and Asia.
Overall, COP’s LNG strategy is expected to become a free cash flow growth engine, supported by rising global demand, strategic geographic positioning of its assets and energy security concerns across the globe.
Other Energy Players With Growing LNG PortfoliosVenture Global (VG - Free Report) is a leading U.S.-based exporter of LNG. VG is advancing several natural gas liquefaction and export projects along the U.S. Gulf Coast: Calcasieu Pass, Plaquemines, CP2 and CP3. These projects have seen strong recent progress, positioning the company for meaningful capacity growth.
Cheniere Energy (LNG - Free Report) is an energy infrastructure company, primarily engaged in the liquefied natural gas business. It operates the Sabine Pass LNG terminal and the Corpus Christi liquefaction and export facility in the United States. Cheniere Energy continues to benefit from large-scale brownfield expansion opportunities at both the Sabine Pass and Corpus Christi facilities. Management stated that the projects could expand the company’s production platform by nearly 20% over time.
COP’s Price Performance, Valuation & EstimatesConocoPhillips’ shares have jumped 35.8% over the past year compared with the 34.4% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, COP trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.59X. This is above the broader industry average of 5.48X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for COP’s 2026 earnings has been revised upward over the past seven days.
Image Source: Zacks Investment Research
COP, VG and LNG each currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
On a recent episode of The Real Eisman Playbook, Bernstein Research senior energy analyst Bob Brackett made a claim that should change how income investors look at the oil majors. “Don’t compare the yields you get from a commodity company to government yields. Compare them to TIPS. These are inflation protected,” he told host Steve Eisman. That single reframing is the entire bull case for owning Exxon Mobil (NYSE:XOM | XOM Price Prediction), Chevron (NYSE:CVX), and ConocoPhillips (NYSE:COP) in a portfolio’s income sleeve.
A 10-year Treasury today pays 4.57% in nominal terms. The 10-year TIPS real yield is 2.16%. That TIPS number is the honest benchmark for any asset whose cash flows adjust to inflation. An Exxon or Chevron dividend is, by definition, indexed to a barrel of oil.
The “My 3% Dividend From Exxon” Thesis Brackett’s clearest articulation: “My 3% dividend from Exxon, if the dollar devalues, the barrel of oil gets more valuable and they’ll sustain that.” A fixed Treasury coupon cannot do that. The bond pays the same dollars whether the dollar buys a loaf of bread or half a loaf next year.
The numbers back Exxon’s durability. The company posted a $1.03 per share Q2 2026 dividend payable June 10, 2026, sitting on a 43-year dividend growth streak and a planned $20 billion of share repurchases in 2026. Underlying Q1 2026 earnings rose to $8.77 billion from $7.58 billion from a year earlier, per the company’s Q1 2026 8-K filing. CEO Darren Woods called Exxon “a fundamentally stronger company than it was just a few years ago, built to perform through disruption and across market cycles.”
Exxon shares are up 30% year to date and 55% over one year, helped by WTI crude trading at $112.25 per barrel as of May 18, 2026, near a 12-month high.
The COVID Stress Test Brackett’s evidence that these dividends are real runs through 2020. During COVID, demand collapsed by roughly 20 million barrels per day. The US majors paid through it. Exxon, Chevron, and ConocoPhillips maintained their dividends through the COVID demand shock. European peers Shell, BP, and Total cut theirs during the same period.
The dividend history confirms it. Exxon held its quarterly payout at $0.87 through all of 2020. Chevron held at $1.29 per quarter throughout 2020 and has now stacked a 39-year run of annual increases, paying $1.78 per share for Q2 2026. Chevron’s Q1 2026 results delivered $2.5 billion in repurchases, the 16th consecutive quarter of more than $5 billion returned to shareholders.
Collectively, the US majors are returning roughly $30 billion to $50 billion annually through dividends and buybacks while still growing. Brackett calls them “really attractive widows and orphans, pack them away, compound for a long time.”
Why Eisman Says They’re Finally Ownable Steve Eisman, who spent much of his career hating the E&P sector, brought the historical frame. “Until maybe 2016, ’17, I thought they were run by lunatics,” he said. CEOs would “drill baby drill” regardless of commodity prices, apparently compensated on volume rather than returns. “These were companies that were crazy” and “not ownable” back then. Today, after shareholder pressure rewired comp plans toward returns on capital, Eisman calls them “almost ownable.”
ConocoPhillips is exhibit A of the new discipline. The company is targeting 45% of cash from operations returned to shareholders in 2026, with over $1 billion in run-rate synergies from the completed Marathon Oil deal. The Q2 2026 dividend of $0.84 per share follows an increase from $0.78 in late 2025. Shares are up 31% year to date.
The Practical Takeaway I’ve been watching this sector reluctantly for the better part of a decade, mostly because Eisman’s old view was correct: management teams torched capital chasing rigs. Something changed around 2017. The buybacks got bigger, debt got smaller, and the Q1 2026 numbers across all three majors confirm the new playbook is holding.
When you screen for income, the choice between a Treasury and a dividend stock has always felt binary. Brackett’s reframe collapses that wall. A commodity-backed dividend from a disciplined operator behaves more like an inflation-linked bond than an equity coupon. That doesn’t make energy risk-free, and oil at the 98.4th percentile of its 12-month range is a reminder of how quickly the setup can change. But against a 2.16% real yield on TIPS, a 3% dividend backed by a barrel of oil deserves a place in the income sleeve of the portfolio alongside inflation-protected bonds.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: ConocoPhillips (COP - Free Report) Headquartered in Houston, TX, ConocoPhillips is primarily involved in the exploration and production of oil and natural gas. Considering proved reserves and production, the company is among the largest explorers and producers in the world. The company, founded in 1875, has a strong presence across conventional and unconventional plays in 13 countries. ConocoPhillips’ low-risk and cost-effective operations are spread across North America, Asia, Australia and Europe.
COP is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.76; value investors should take notice.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $2.48 to $9.92 per share. COP boasts an average earnings surprise of +5.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, COP should be on investors' short list.
ConocoPhillips offers compelling value at $114, trading at 11.6x forward P/E and yielding 2.9%, supported by robust fundamentals. COP's growth is underpinned by the Willow project in Alaska and an expanding LNG platform, including Port Arthur LNG nearing first production. Strong balance sheet with A- credit rating, and a shareholder-friendly capital return policy reinforce COP's investment appeal.
As I do now and then, I'm here to recommend an exchange-traded fund (ETF) for your consideration. (Remember that ETFs are funds that trade like stocks.) Specifically, one that's focused on dividend-paying stocks. There are many such ETFs to choose from, but it's hard for me to recommend any other one than the Schwab U.S. Dividend Equity ETF (SCHD +0.89%).
Here's a look at why I like it so much.
Image source: Getty Images.
A glorious mix of income and growth With dividend-focused ETFs, there's generally a trade-off between dividend income and growth. The highest-yielding ETFs tend to grow more slowly, and vice versa. The Schwab U.S. Dividend Equity ETF, though, is strong on both counts.
Today's Change
(
0.89
%) $
0.29
Current Price
$
32.82
Its dividend yield is 3.25% (as of June 3); a look at its recent performance follows. I'm including the performance of the Vanguard S&P 500 ETF (VOO +0.56%), which recently yielded merely 1.1%, too, for comparison.
Fund
3-Year Avg. Annual Return
5-Year Avg. Annual Return
10-Year Avg. Annual Return
Schwab U.S. Dividend Equity ETF
15.09%
8.50%
12.78%
Vanguard S&P 500 ETF
22.44%
14.10%
15.56%
Data source: Morningstar.com, as of June 3, 2026.
You can see that the Schwab fund, up 19% year to date, delivers less growth than the S&P 500, but not that much less, especially when compared with many other dividend-focused ETFs. Also, it kicks out almost three times the dividend income as the S&P 500.
Meanwhile, its expense ratio -- i.e., its annual fee -- is also compelling, at a mere 0.06%. That means that for every $10,000 you have invested in the fund, you'll pay only $6.
The Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index, which encompasses 100 stocks with a track record of paying dividends for at least 10 years. The index also demands that its components appear financially healthy, gauging factors such as cash flow to total debt and return on equity. That requirement can help it perform well, as companies on shakier financial ground may have to reduce or even suspend their dividend payments should they run into trouble.
Also, healthy and growing dividend-paying stocks tend to increase their payouts over time, which will benefit shareholders.
What's in the Schwab U.S. Dividend Equity ETF? Here are the top 10 holdings as of June 2, along with their weighting in the fund and their recent dividend yield:
Stock
Weight in ETF
Recent Yield
Qualcomm
6.21%
1.47%
Texas Instruments
5.72%
1.84%
UnitedHealth Group
5.14%
2.46%
Coca-Cola
3.98%
2.69%
Chevron
3.95%
3.75%
Merck
3.78%
2.96%
Verizon Communications
3.68%
6.07%
ConocoPhillips
3.60%
2.82%
Procter & Gamble
3.50%
3.04%
Amgen
3.43%
2.98%
Data source: Morningstar.com, as of June 2, 2026.
These 10 holdings together make up about 43% of the ETF's value. About 18% of its assets are in consumer defensive stocks, 15% in energy stocks, and 18% in healthcare stocks. That kind of mix is appealing to me because I think there's a significant chance of a market pullback in the coming year or two. If that happens, those three sectors are likely to hold their value more than some others.
So give this dividend-focused ETF some consideration for your long-term stock portfolio, especially if you seek growth and income.
Selena Maranjian has positions in Amgen, Procter & Gamble, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool has positions in and recommends Amgen, Chevron, Merck, Qualcomm, Texas Instruments, and Vanguard S&P 500 ETF. The Motley Fool recommends ConocoPhillips, UnitedHealth Group, and Verizon Communications. The Motley Fool has a disclosure policy.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: ConocoPhillips (COP - Free Report) Headquartered in Houston, TX, ConocoPhillips is primarily involved in the exploration and production of oil and natural gas. Considering proved reserves and production, the company is among the largest explorers and producers in the world. The company, founded in 1875, has a strong presence across conventional and unconventional plays in 13 countries. ConocoPhillips’ low-risk and cost-effective operations are spread across North America, Asia, Australia and Europe.
COP is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Oils-Energy stock. COP has a Momentum Style Score of A, and shares are up 2.9% over the past four weeks.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $2.59 to $10.03 per share. COP boasts an average earnings surprise of +5.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, COP should be on investors' short list.
