ConocoPhillips Stock Still Looks 18% Undervalued - How to Play COP Stock?

Core Viewpoint - ConocoPhillips Inc. (COP) stock is currently undervalued and offers a solid annual yield, making it an attractive investment opportunity for value investors [1][3]. Stock Performance - COP stock is priced at $92.67 as of December 19, 2025, and has remained relatively flat over the past six months [1]. - The stock provides an annual dividend per share (DPS) of $3.36, resulting in a yield of 3.63% for long-term holders [1]. Investment Strategies - One strategy suggested is to sell short out-of-the-money (OTM) puts, which can generate income. For instance, 5% OTM COP puts yield 1% monthly [1]. - A previous recommendation involved selling OTM put options at a strike price of $80, which expired worthless, allowing for a profitable repeat of this income strategy [4]. Valuation Insights - Valuation of COP stock can be approached by considering its historical dividend yield. The average yield over the last five years is reported as 3.12% [5]. - Using the highest historical yield of 3.10%, the target price (TP) for COP stock is calculated to be $109.39, indicating an 18% potential increase from the current price [6]. - If the average yield of 2.643% is applied, the TP rises to $127.13, suggesting a 37% upside [6]. Analyst Price Targets - Analysts have varying target prices for COP stock, with an average TP of $112.32 reported by Yahoo! Finance and $112.23 by Barchart [7]. - AnaChart.com indicates that 15 analysts have an average TP of $118.39, which falls between the calculated target prices [7].