ConocoPhillips (NYSE:
COP) is one of the
Best Oil and Gas Stocks to Buy According to Analysts. On August 20, Melius Research began coverage of the company’s stock with a “Hold” rating and a price objective of $117, as reported by
The Fly. As per the firm’s analyst, the introduction, adoption, and acceleration of AI transformed Energy & Power into an AI category. Notably, the broader market remains in its early stages of a Power revolution, which is only in the early innings of shifting leadership towards a new group of winners.
In Q2 2025, ConocoPhillips (NYSE:COP) delivered healthy results financially, operationally, and strategically. It completed the Marathon Oil integration and is on track to deliver over $1 billion in synergies and more than $1 billion of one-time benefits. ConocoPhillips (NYSE:COP) has been leveraging its scale and technologies to drive a further $1 billion-plus in cost reductions and margin enhancements by 2026 end. Such efforts are expected to strengthen its FCF generation, allowing it to continue delivering healthy returns on and of capital.
Cullen Capital Management, LLC, operating under the name
Schafer Cullen Capital Management, Inc. (SCCM), released its Q2 2025 investor letter.
Here is what the fund said:
“ConocoPhillips (NYSE:COP) – The stock was purchased in the strategy during the quarter. ConocoPhillips is a leading independent exploration and production company with a global portfolio of low-cost, high-return assets and a disciplined capital allocation strategy. The company is approaching a free cash flow inflection as capital spending on major long-cycle projects begins to roll off in 2H25, improving its ability to return capital to shareholders. Management targets returning approximately 45% of operating cash flow through dividends and buybacks, supported by efficiency gains and a strong balance sheet. COP trades at 14.4x 2025 EPS and offers an ~8% capital return yield, presenting an attractive entry point amid a constructive long-term oil backdrop.”
While we acknowledge the potential of COP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the
best short-term AI stock.
READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now
Disclosure: None. This article is originally published at
Insider Monkey.
