MMR

Oil & Gas Stock Signaling a Short-Term Pop

Oil prices might be sinking lower, but one COP could be a bet for contrarians

Managing Editor
Sep 5, 2024 at 1:42 PM
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The jury is out as to whether September is truly a seasonally bearish period for stocks. Regardless of how you view this month, we've outlined some historical outperformers to monitor this month, such as cybersecurity stock Palo Alto Networks (PANW). If past is precedent, ConocoPhillips (NYSE:COP) is another name bulls -- or anyone looking to profit off a short-term move higher -- should watch this month, given its September history. 

Per a study from Schaeffer's Senior Quantitative Analyst Rocky White, COP is one of the best S&PS 500 Index (SPX) stocks to own in September. The equity is second-best on the list, averaging a 3% return over the last decade, with a monthly win rate of 60%. ConocoPhillips is also the only oil & gas name on the list, noteworthy given how oil prices have careened lower all summer.

On the charts, COP is down roughly 7% in 2024, with its 200-day moving average keeping a lid on rallies in July and August. However, the shares are already 2.1% higher in first three trading days of September, even amid a price-target cut from Susquehanna to $147 from $154 this morning. 

 

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