About six month's ago, I decided to make a small investment in one of America's oil companies, Conoco Phillips (COP).
The overall health of the company was very good, but oil price fluctuations worldwide had lowered the stock price to a bargain level. I decided to make a small investment at $63 a share.
A quick analysis of the company today (where the stock hovers between $80-$90 a share) shows there are still bullish signs. Comparing Conoco Phillips with industry standards reveals important financial information that may continue to push the price upwards.
Exxon Mobil Corp. (XOM) remains the largest U.S. oil company with market cap around $485 billion. Conoco Phillips has a market cap around $136 billion. However, I like the long term earnings estimate of COP better than XOM.
COP currently trades at about 12.7 times earnings, while XOM trades around 12.5 times earnings. However, the five year price to earnings growth estimate is what gets me excited (PEG Ratio = Price to Earnings Ratio / Annual Earnings Per Share Growth).
COP has an expected five year price to earnings growth ratio of 1.17, compared with XOM at 2.18. With very comparable gross margins (both over 33%), I like COP in terms of potential growth.
In my opinion, based on the numbers, COP will grow earnings faster than XOM, which will allow the stock to outperform its more mature counterpart.
Recommendation: buy shares of Conoco Phillips for the long haul
I am long Conoco Phillips
Thursday, September 6, 2007
Conoco Phillips vs. Exxon Mobil Corp.
Subscribe to:
Post Comments (Atom)
6 comments:
I'm the sort of hombre who passions to seek original things. Presently I'm building my personalized photovoltaic panels. I'm doing it all alone without the help of my men. I'm using the internet as the only path to acheive that. I encountered a very brilliant website which explains how to contruct solar panels and so on. The place explains all the steps required to solar panel construction.
I am not exactly sure about how correct the information given there iz. If some people over here who have experience with these works can have a look and give your feedback in the site it will be awesome and I would extremely appreciate it, because I really passion [URL=http://solar-panel-construction.com]solar panel construction[/URL].
Tnx for reading this. U guys are the best.
Saw your site bookmarked on Reddit.I love your site and marketing strategy.Your site is very useful for me .I bookmarked your site!
I am been engaged 5 years on the account money If you have some questions, please get in touch with me.
i definitely adore your writing kind, very helpful,
don't quit and keep posting due to the fact that it just simply very well worth to look through it,
looking forward to view a lot more of your own article content, have a great day :)
tudo bem? apreciei imenso a tua página, bom trabalho!
Continua o bom trabalho
Olá questionas discussões deveras engraçados aqui....
Oi gostavas ganhar dinheiro na internet?, visita http://www.ganhardinheiroonlinefacil.blogspot.com/ com vários modos para ganhar dinheiro na net sem ter de investir.........
Post a Comment