From Yahoo Finance: 2024-05-09 10:00:02

ConocoPhillips is a global oil and gas company, with majority revenue from the U.S. The stock has surged but could be hit hard by a U.S. recession. The economy has been booming, but signs of a slowdown are evident. Legendary investors avoid predicting macro events. ConocoPhillips’ earnings history shows cyclicality and vulnerability to falling oil prices.

Management of capital allocation and oil reserves at ConocoPhillips are underwhelming. The stock is richly priced compared to historical ratios. The growth outlook is dim due to high costs and potential fossil fuel demand peak with the energy transition. With WTI oil prices historically lower than the current price, earnings per share could decline in the future. The lack of a cost moat is concerning for the company.



Read more at Yahoo Finance: Oil Stocks Are Vulnerable to a US Recession