Wall Street Cautious on ConocoPhillips (COP), Here’s Why

Group 1: Company Overview - ConocoPhillips (NYSE:COP) is recognized as one of the cheap stocks to buy now, despite Wall Street's cautious outlook due to supply-side risks in the oil and liquids sector [1] - The company operates in exploration and production of natural gas, crude oil, and bitumen across various geographical segments including Alaska, Lower 48, Canada, Europe, the Middle East, North Africa, Asia Pacific, and Other International [5] Group 2: Financial Performance - ConocoPhillips exceeded analysts' expectations in its fiscal Q3 2025 announcement, with a quarterly revenue growth of 14.1% year-over-year to $15.52 billion, surpassing estimates by $893.56 million [4] - The company's earnings per share (EPS) of $1.61 also exceeded consensus estimates by $0.20 [4] - Full-year 2025 production guidance was raised to 2.375 million barrels of oil equivalent per day (MMBOED), while operating cost guidance was reduced to $10.6 billion [5] Group 3: Analyst Insights - Analyst Arun Jayaram from J.P. Morgan lowered the price target for ConocoPhillips from $112 to $102 but maintained a Buy rating, reflecting an updated view of the sector for 2026 [1][2] - The supply-side risks identified include potential oversupply of oil compared to demand and the possibility of increased oil supply following the end of the Russia-Ukraine war in 2026 [3]