Buy Recommendation Reiterated For ConocoPhillips

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- ConocoPhillips (NYSE: COP) has been reiterated by TheStreet Ratings as a buy with a ratings score of A-. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income, attractive valuation levels, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 37.9% when compared to the same quarter one year prior, rising from $1,798.00 million to $2,480.00 million.
  • 38.91% is the gross profit margin for CONOCOPHILLIPS which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.17% significantly outperformed against the industry average.
  • Net operating cash flow has slightly increased to $3,705.00 million or 5.25% when compared to the same quarter last year. In addition, CONOCOPHILLIPS has also modestly surpassed the industry average cash flow growth rate of 1.10%.

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids on a worldwide basis. ConocoPhillips has a market cap of $86.2 billion and is part of the basic materials sector and energy industry. Shares are up 20.6% year to date as of the close of trading on Monday.

You can view the full ConocoPhillips Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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