Houston, Texas-based ConocoPhillips (COP) is one of the world’s largest independent E&P companies based on production and proved reserves. With a market cap of $122.2 billion, ConocoPhillips employs over 10,300 people and operates in 13 countries across the Americas, Indo-Pacific, and the EMEA region.

Companies worth $10 billion or more are generally described as "large-cap stocks," ConocoPhillips fits this bill perfectly. Given its dominance in the oil & gas industry, its valuation above this mark is not surprising. With a commitment to safe and responsible development, the company accesses, develops and produces oil & natural gas to help meet the world's energy needs.

Despite its strength, COP stock has slipped 21.5% from its 52-week high of $135.18 achieved on Apr. 12. Moreover, the stock has declined over 6.7% over the past 3 months lagging behind the S&P 500 Index’s ($SPX) 7.1% gains over the same time frame.

ConocoPhillips has underperformed the S&P 500 over the longer term as well. COP stock has dipped 8.6% on a YTD basis and 7.9% over the past 52-week period compared to the SPX’s surge of 26.8% in 2024 and 31.6% over the past year.

To confirm the bearish trend, COP has mostly traded below its 200-day moving average since late May and below its 50-day moving average since early May with some notable fluctuations lately.

However, ConocoPhillips’ stock prices soared 6.4% after the release of its better-than-expected Q3 earnings on Oct. 31. The company demonstrated strong operational performance, surpassing the high end of its production guidance, while executing its returns-focused value proposition. Although its revenues of $13.6 billion fell short of Wall Street’s expectation, its adjusted EPS of $1.78 surpassed analysts’ consensus estimates by a notable 6%.

Additionally, the company’s cash flow from operations for the past three quarters has increased 6.6% year-over-year to $15.7 billion. Meanwhile, it has raised its ordinary dividend, increased its share repurchase authorization and is on track to distribute at least $9 billion to shareholders in 2024, demonstrating its commitment to shareholders.

ConocoPhillips has lagged behind its peer EOG Resources, Inc.’s (EOG) 8.5% gains on a YTD basis and 6.2% returns over the past year.

Nevertheless, the company has a consensus “Strong Buy” rating among the 24 analysts covering the stock. COP’s mean price target of $133.48 represents a staggering 25.8% premium to the current price levels.