ConocoPhillips
Over the past 12 months, shares of ConocoPhillips (NYSE: COP) have added 20% to their value. That gain includes a share price drop of about 4.2% over the past six months. The oil producer’s payout ratio of around 40% makes it a favorite of institutional investors who own about 80% of the outstanding shares. Crude oil prices are lower than they were a year ago but are expected to move higher in the second half of the year. The company’s outlook is likely to determine how investors react to the report.
There are 26 brokerages covering ConocoPhillips, and 19 have ratings of Buy or Strong Buy. The others rate the stock at Hold. At a share price of around $116.80, the upside potential based on a median price target of $126.00 is about 7.3%. At the high price target of $153.00, the upside potential is about 31.2%.
For the second quarter of 2023, analysts expect revenue of $15.03 billion, down 3.1% sequentially and 31.7% lower year over year. Adjusted EPS are expected to come in at $1.96, down 17.7% sequentially and by 49.9% year over year. For the full 2023 fiscal year, Conoco is expected to report EPS of $9.00, down 33.4%, on sales of $62.46 billion, down 24%.
Conoco stock trades at 13.0 times expected 2023 EPS, 11.6 times estimated 2024 earnings of $10.04 and 12.4 times estimated 2025 earnings of $9.40 per share. The 52-week trading range is $88.00 to $138.49. The company pays an annual dividend of $2.40 (yield of 2.04%). Total shareholder return for the past 12 months was 29.34%.
Warner Bros. Discovery
Media company Warner Bros. Discovery Inc. (NASDAQ: WBD), created following the April 2022 merger of Discovery with AT&T’s WarnerMedia, posted a 52-week low in late December. Since then, the stock is up by more than a third but is still down nearly 14% for the past 12 months. The studio’s Barbie movie has grossed more than $780 million worldwide since its release two weeks ago. Alas, the revenue will not show up until the company reports third-quarter earnings in about three months.
Of 27 analysts covering the stock, there are nine Hold ratings and 17 ratings of Buy or Strong Buy. At a share price of around $13.00, the implied upside based on a median price target of $19.00 is 46.2%. At the high price target of $33.00, the implied gain is around 154%.
Second-quarter revenue is forecast at $10.46 billion, down 2.3% sequentially and by 3.3% year over year. Analysts are looking for an adjusted loss of $0.08 per share, better than the per-share loss of $0.38 in the first quarter and the $0.57 loss per share a year ago. The estimates for the full year call for EPS of $0.62 on sales of $42.96 billion, up 27%. For 2022, the company reported revenue of $33.82 billion and a loss per share of $1.67.
Warner Bros. Discovery stock trades at 20.8 times expected 2023 EPS, 11.6 times estimated 2024 earnings of $1.11 and 8.8 times estimated 2025 earnings of $1.47 per share. The stock’s post-merger range is $8.82 to $17.65. The company does not pay a dividend, and the total shareholder return for the past year is negative 16.17%.
Originally published at 24/7 Wall St.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
