Energy Stock Stumbles on Downgrade Despite Sector Gains

However, the stock hit a three-year high earlier in the session

Deputy Editor
Oct 11, 2021 at 10:21 AM
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The energy sector is getting a boost today, as oil prices surge to multi-year highs. However, ConocoPhillips (NYSE:COP) is bucking the trend, after a downgrade from Goldman Sachs to "neutral" from "buy," with the analyst in coverage naming Exxon Mobil (XOM) as a better play. At last check, COP was down 1% to trade at $74.16.  

Just last session, ConocoPhillips stock hit a three-year high of $75.10. Earlier this morning, COP extended those highs by inching up to $75.20 before turning lower. Still, the equity is above from a slew of short- and long-term moving averages, including the closely supportive 10-day trendline. A short-term dip could have already been in the cards, too, as the security's Relative Strength Index (RSI) of 97 is firmly in "overbought" territory. 

The majority of analysts were bullish on the oil and gas name coming into today, with 26 of the 29 in coverage carrying a "strong buy" rating, and three a "hold." However, the 12-month consensus price target of $78.49 is a slim 5.3% premium to current levels. 

COP options are well-priced at the moment. The stock's Schaeffer's Volatility Index (SVI) of 35% stands higher than 17% of all other readings in its annual range, implying that options players are pricing in low volatility expectations at the moment. 




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