A recent recovery in the global oil market led to a few U.S. oil giants rewarding their investors with dividends. ConocoPhillips (COP, $79.91), a major U.S. player, is setting the trend for others to follow. By boosting its payout three times in less than two years, ConocoPhillips is all set to emerge as a viable income growth option for investors in the space.
Between 2001 to 2012, ConocoPhillips pushed its yield to well above 4%, which was more than double what the S&P 500 offered at that time. However, with the oil supply glut and the subsequent market downturn in 2016, the company aggressively slashed its payout to preserve cash.
Today, with the markets improving with production cuts and increased signs of tighter balance between supply and demand, companies like ConocoPhillips and its peers are making it a priority to reward investors. COP first raised its payout in 2017 by 6%, then further enhanced the payout by 7.5% in early 2018 and another 7% more recently.
As a part of its remodeled strategy, the company adopted both a dividend and stock repurchase program to reward investors. In terms of buybacks, the company also enhanced its original plan to buy back shares worth $3 billion.
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where COP advanced for three days, in of 312 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 58 cases where COP's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The 50-day moving average for COP moved above the 200-day moving average on March 27, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
The Aroon Indicator entered an Uptrend today. In of 307 cases where COP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for COP moved out of overbought territory on April 12, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on April 16, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on COP as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for COP turned negative on April 12, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where COP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. COP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.072) is normal, around the industry mean (5.854). P/E Ratio (14.203) is within average values for comparable stocks, (18.621). Projected Growth (PEG Ratio) (0.867) is also within normal values, averaging (5.068). Dividend Yield (0.019) settles around the average of (0.083) among similar stocks. P/S Ratio (2.763) is also within normal values, averaging (148.486).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a producer of wholesales oil and natural gas
Industry OilGasProduction