Zacks Investment Research·23h ago
Here's Why ConocoPhillips (COP) is a Strong Value StockThe Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
ConocoPhillips' Q2 2026 results show a dramatic revenue and EPS surge (29.4% YoY revenue growth, 107.1% EPS growth), but the zero COGS and SG&A volatility suggest data anomalies that warrant caution. The balance sheet remains fortress-like with a D/E of 0.36 a...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue surged 29.4% YoY to $18.1B in Q2 2026 with EPS up 107.1%, but gross margin of 100% is a data artifact (COGS reported as zero), and margins have ranged from 19.6% to 30.6% over the past year, indicating volatile, commodity-driven profitability.
Many analysts have issued 'Buy' or 'Overweight' ratings for ConocoPhillips (COP), with median price targets suggesting potential upside from current levels, ranging from $131.36 to $140.00, and the highest projections reaching up to $183.00.
ConocoPhillips maintains a strong market capitalization and a relatively low debt-to-equity ratio, indicating financial stability and a lower risk profile.
The company's expanding LNG portfolio and progress on large-scale liquefaction projects like those in Qatar, Port Arthur, and Willow are expected to drive substantial free cash flow and revenue expansion through 2029.
Ongoing geopolitical tensions, particularly in the Middle East, could negatively impact oil prices and demand, posing risks to ConocoPhillips' profitability, especially given its unhedged position.
The growing trend towards renewable energy may lead to a structural shift away from fossil fuels, potentially affecting long-term demand for oil producers like ConocoPhillips.
ConocoPhillips has seen its net profit margins slip from 16.3% to 13.2% over the last year, with recent quarters not showing a clear improvement.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 6, 2026 | $3.24+11.7% vs $2.90 | $19.5B+3.9% vs $18.8B |
Q2 2026 Apr 30, 2026 | $1.89+9.9% vs $1.72 | $16.1B+2.8% vs $15.6B |
Q1 2026 Feb 5, 2026 | $1.02-4.7% vs $1.07 | $14.2B+1.7% vs $13.9B |
Q4 2025 Nov 6, 2025 | $1.61+14.2% vs $1.41 | $15.0B+2.9% vs $14.6B |
The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
ConocoPhillips is rated Buy, with oil price upside outweighing elevated geopolitical risk at current valuation. COP's production engine is the U.S. Lower 48, but international exposure—Qatar, Libya, Iraq, Syria—raises geopolitical risk amid current global tensions. Q2 execution was strong: record Permian output, $4.2B free cash flow, and $3B shareholder returns, but total production fell 4% year over year.
ExxonMobil has committed a greater amount of capital toward its dividends and stock buybacks. ConocoPhillips' capital-return plans will likely provide a greater boost for its stock.
A 63-year-old mineral owner collects royalty checks while another company drills his wells, but filing for Social Security early turns that seemingly passive income into a high-stakes question about which dollars actually count against him.
Benchmark COP against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for ConocoPhillips (COP)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $125.27 | $152.62B | 19.73 | 7.51% | 13.6% | 12.36% | 2.54% | |
| $139.52 | $74.31B | 15.32 | -3.47% | 25.71% | 22.38% | — | |
| $46.93 | $32.86B | 11.17 | 7.83% | 16.67% | 14.9% | — | |
| $42.30 | $14.95B | 10.60 | -8.39% | 18.99% | 22.97% | — | |
| $184.50 | $51.9B | 32.20 | 36.31% | 9.27% | 3.62% | — | |
| $56.31 | $56.01B | 34.98 | -20.32% | 28.79% | 25.7% | — |
ConocoPhillips (COP) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
ConocoPhillips (COP) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 11, 2026·SEC
Aug 6, 2026·SEC
Jun 23, 2026·SEC
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ConocoPhillips (COP) stock FAQ — growth, dividends, profitability & financials explained
ConocoPhillips (COP) reported $62.42B in revenue for fiscal year 2025. This represents a 295% increase from $15.81B in 1996.
ConocoPhillips (COP) grew revenue by 7.5% over the past year. This is steady growth.
Yes, ConocoPhillips (COP) is profitable, generating $9.28B in net income for fiscal year 2025 (13.6% net margin).
Yes, ConocoPhillips (COP) pays a dividend with a yield of 2.54%. This makes it attractive for income-focused investors.
ConocoPhillips (COP) has a return on equity (ROE) of 12.4%. This is reasonable for most industries.
ConocoPhillips (COP) generated $19.59B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
