NEW YORK (TheStreet) -- ConocoPhillips (COP) - Get Report stock closed lower by 2.8% to $45.87 on Monday afternoon, following a drop in oil prices due to a decline in Chinese industrial companies' profits, Reuters reports.
WTI crude is down 2.69% to $44.47 per barrel, while Brent crude is declining 2.57% to $47.35 per barrel this afternoon, according to the CNBC.com index.
An estimated drop in stockpiles at the Cushing, Okla. delivery hub, however, may lead to a rise in oil prices if the data from the U.S. Energy Information Administration confirms the decline, Reuters added.
"As far as the weekly EIA numbers are concerned, we expect only small stock shifts across all categories with any big surprises likely to tilt bullish," Ritterbusch and Associates' Jim Ritterbusch told Reuters. "This won't necessarily change overall U.S. balances, in which the total of crude and all U.S. products is approaching a record and is about 14% above a year ago."
Houston-based ConocoPhillips is an independent oil and gas exploration and production company.
Separately, TheStreet Ratings team rates CONOCOPHILLIPS as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate CONOCOPHILLIPS (COP) a HOLD. The primary factors that have impacted our rating are mixed — some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.03, which illustrates the ability to avoid short-term cash problems.
- 36.86% is the gross profit margin for CONOCOPHILLIPS which we consider to be strong. Regardless of COP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -2.15% trails the industry average.
- COP, with its decline in revenue, slightly underperformed the industry average of 34.6%. Since the same quarter one year prior, revenues fell by 40.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- CONOCOPHILLIPS has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CONOCOPHILLIPS reported lower earnings of $4.61 versus $6.43 in the prior year. For the next year, the market is expecting a contraction of 106.7% in earnings (-$0.31 versus $4.61).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 108.6% when compared to the same quarter one year ago, falling from $2,081.00 million to -$179.00 million.
- You can view the full analysis from the report here: COP