Why ConocoPhillips Stock Was Up 5% Today
At 2 p.m. EDT today, the stock of U.S. energy company ConocoPhillips (NYSE: COP) was higher by roughly 5%. There was no news out of the company, but an analyst at Bernstein and another Wall Street research shop provided updated views of the future of the energy sector, and investors responded by boosting the stock price.
Although not specific to ConocoPhillips, an analyst at Bernstein has taken a new look at names in exploration and production (E&P) and finds them generally attractive. The basic logic is that the supply/demand balance in the oil market is adjusting in such a way that oil prices are likely to remain elevated even in the face of an increasing use of cleaner alternatives, like electric vehicles. Notably, E&Ps are going to be increasingly focused on returning capital to investors. As a global player in the energy drilling space, ConocoPhillips is set to benefit.
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Source Fool.com
