It has been a bear quarter for ConocoPhillips (NYSE: COP), a major oil company.
Energy prices have been weak due to lesser demand and greater supply. United States Oil (NYSE: USO), the exchange traded fund for oil, is down more than 18 percent for the last quarter of market action. Over that same period, ConocoPhillips fell by more than ten percent.
But ConocoPhillips is up for the last week and month of trading (chart below).
There are many reasons for investors to be long term bulls about ConocoPhillips. Global demand for oil and natural gas will increase when growth picks up in China, India, and other emerging market nations. When that happens, the price of oil and natural gas will rise.
So, too, should the stock price for ConocoPhillips, United States Oil, and other assets in the energy sector.
ConocoPhillips is certainly priced attractively for growth investors, at the present. The price-to-earnings ratio is just 12.29. Eanings per share over the next five years are projected to be much higher than those next year. That is a very bullish trend anticipated for the future that should appeal to growth investors.
For income investors, ConocoPhillips is appealing right now!
The current dividend yield is over 4 percent. That is about twice the average for a member of the Standard & Poor’s 500 Index (NYSE: SPY). In addition, ConocoPhillips has a history of dividend growth. When the amount of the dividend is increased, shareholders get a raise simply for not selling the stock!
Warren Buffett is also a shareholder of ConocoPhillips. That obviously increases the allure of any investment when “The Oracle of Omaha” is on board for the long term! Buffett owns other oil company stock such as ExxonMobil (NYSE: XOM). Buffett is obviously bullish on the oil and natural gas sector as ExxonMobil is the world’s biggest energy firm.