ConocoPhillips: Why The Stock Outperformed Over The Past Month
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Michael Fitzsimmons22.58K FollowersFollow5ShareSavePlay(10min)CommentsSummaryCOP's recent stock outperformance is likely driven by anticipated compensation from the CITGO refinery sale, not underlying commodity price strength.Strategic LNG expansion, including Port Arthur and global assets, positions COP to better monetize Permian dry gas and diversify revenue streams.Q3 results showed $2.5 billion of FCF, improved production guidance, and operational synergies from the Marathon acquisition, supporting stable performance.ConocoPhillips is rated "Hold" due to its attractive 3.5% yield and a valuation reflecting solid FCF and a strong balance sheet, but offset by a muted O&G price outlook for 2026. alvarez/E+ via Getty Images Over the past month, ConocoPhillips (COP) has not only outperformed the broad energy sector as represented by the State Street® Energy Select Sector SPDR® ETF (XLE), but also the S&P 500 and Nasdaq-100 (see chart below). Given that theThis article was written byMichael Fitzsimmons22.58K FollowersFollowMichael Fitzsimmons is a retired electronics engineer and avid investor. He advises investors to construct a well-diversified portfolio built on a core foundation of a high-quality low-cost S&P500 fund. For investors who can tolerate short-term risks, he advises an over-weight position in the technology sector, which he believes is still in the early stages of a long-term secular bull-market. For dividend income, and as a 4th generation oil & gas man, Fitzsimmons suggests investors consider a position in large O&G companies that provide strong dividend income and dividend growth. Fitzsimmons' articles on portfolio management recommend a top-down capital allocation approach that is aligned with each individual investor's personal situation (i.e. age, retired/working, risk tolerance, income, net worth, goals, etc) and might include allocations into investment categories such as the S&P500, technology, dividend income, sector ETFs, growth, speculative growth, gold, and cash.Analyst’s Disclosure:I/we have a beneficial long position in the shares of COP, XOM, CVX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.