ConocoPhillips

COP
Real-time BATS EXCHANGE - 12/06 04:00:00 pm
61.305USD
+3.54%

ConocoPhillips : The revival in interest should continue

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Gallien Girardot
 

Strategy published on : 12/03/2019 | 08:54

long trade
Live

Entry price : 59.74$
Target : 72$
Stop-loss : 58.25$
Potential : 20.52%

ConocoPhillips shares have recently benefited from a buyers' comeback, which was accompanied by a rise in volumes and volatility. This situation suggests a continuation of the upward dynamic.
Investors have an opportunity to buy the stock and target the $ 72.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● The company returns high margins, thereby supporting business profitability.

● The company is in a robust financial situation considering its net cash and margin position.

● Historically, the company has been releasing figures that are above expectations.

● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.

● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● Technically, the stock approaches a strong medium-term resistance at USD 62.75.

● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.

● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.

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