Home
News
- 1 COP stock has experienced a bullish trend since 2021 where it outperformed the market from a farsight.
- 2 The company made a revenue growth of 108% CAGR in two years.
- 3 The current stock price is near a supply zone.
Multinational company, ConocoPhillips (NYSE: COP) is involved in the exploration, production, transportation, and marketing of crude oil, bitumen, natural gas, natural gas liquids, and liquefied natural gas. The company operates in multiple regions worldwide, including Alaska, the United States, Norway, and several other regions.
The Reason Behind the Bullish Rally
Fundamentally, the company has made remarkable growth after 2020; the compound annual growth rate in these two years is 108.16%. In 2021 the company’s average daily output was 1.0 Million barrels of oil and natural gas liquids and 3.2 Billion cubic feet of natural gas. This helped the revenue jump from $18B to $46B, a staggering 145% gain in a year.
The Response of the Market
When these annual reports were published, the market went wild about the COP stock price. Since 2021, this stock has given an absolute return of more than 150%, performing the market by several folds.
The company is also net profit positive, which has further increased the profitability ratios. The Return on equity is 26%, while the return on assets is 14.1%. The earnings share (EPS) is $10.42, and the price-to-earnings ratio (P.E) is 11.7. The firm’s current ratio is 1.46, while the debt-to-equity ratio is 0.35.
Technical Analysis and Prediction of the COP- Stock Price
Recently, the COP stock price has surged 8.3% as the bulls have reclaimed the support level of $112. The COP stock is rising to its next resistance of $124 as the bulls will further try to get past it.
Moreover, the RSI is at the neutral level of 52 after rebounding from 34. This indicates the bulls have enough room to break before the RSI reaches its oversold level near 70. The 50-day exponential moving average price is $117, while the 150-day exponential moving average price is $112.
However, the stock has made a gap-up opening to reach the resistance level, creating illiquidity. This lack of liquidity may cause bearish pressure on the bulls, and they are likely to take a bounce from the resistance level to fill it before making a breakout.
Conclusion
ConocoPhillips (NYSE: COP) made a revenue growth of over 108% CAGR in 2 years, increasing the stock price by more than 150% during this period. The stock price has reclaimed a significant support level, but it is predicted that the stock will fill the liquidity before making a breakout.
Technical Levels
Resistance Levels: $124, and $133
Support Levels: $112, and $100
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
