Is ConocoPhillips Stock Gearing Up for a New Rally?
Underperformance to crude oil
Last week, crude oil (USO) and gas (UNG) producer ConocoPhillips (COP) saw its stock price underperform crude oil prices by a wide margin. ConocoPhillips stock rose moderately from $46.51 to $46.97, whereas crude oil prices rose from $46.22 per barrel to $47.84 per barrel during the same period.
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Key highlights of the week
ConocoPhillips stock closed higher on Monday, May 8, 2017, but experienced heavy selling pressures on Tuesday. Positive price action emerged again on Wednesday and Thursday, which made it possible for COP to close the week on a positive note.
Currently, COP is trading above its 50-day and 200-day moving averages. On May 12, 2017, COP stock closed at $46.97, whereas its 50-day and 200-day moving averages were $47.09 and $45.53, respectively.
How COP stock performed over the medium term
COP stock has rallied from a low of $38.37 in August 2016 to a high of $52.89 in December 2016. Since then, COP stock has been in a moderate downtrend. But on March 30, 2017, COP stock gained strength on news of the transformational Canadian divestitures. The stock could be starting a new medium-term rally. Seven sessions ago, COP stock got support from its 200-day moving average.
In 2016, COP stock rose ~10.0%. So far in 2017, COP stock has fallen ~5.0%. The stock hit a 52-week low of $38.37 on August 2, 2016. It hit a 52-week high of $53.17 on December 13, 2016.
How COP’s peers performed
COP’s peers Marathon Oil (MRO) and Consol Energy (CNX) rose 0.28% and 3.2%, respectively, last week. Oil and gas exploration and production companies (XOP) outperformed the S&P 500 ETF (SPY) last week. According to the SPDR S&P 500 ETF Trust prospectus, “The Trust seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500 Index.”
Next, let’s take a look at ConocoPhillips’s recent dividend announcement.