The Smartest Oil Stocks to Buy With $1,000 Right Now
ConocoPhillips (NYSE: COP) is the kind of energy company that people generally think about when they think about an oil stock. However, for most investors, ConocoPhillips won't be the best oil stock to buy. Here's why, and here are two better choices right now (and in most situations for most investors).ConocoPhillips describes itself as "one of the world's largest independent E&P companies." That basically means that it drills for oil and natural gas (exploration and production), which is what is known as the upstream of the broader energy sector. Since getting oil out of the ground is Conocophillips only revenue source, there are some important things that investors need to understand before buying this or any pure-play upstream stock.Its top and bottom lines are entirely dependent on commodity prices. That's great when energy prices are strong, but it is terrible when energy prices are weak. Since oil is an inherently volatile commodity, prone to dramatic and sometimes swift price swings, ConocoPhillips' financial results and stock price can both be very volatile, too.Continue reading
ConocoPhillips (NYSE: COP) is the kind of energy company that people generally think about when they think about an oil stock. However, for most investors, ConocoPhillips won't be the best oil stock to buy. Here's why, and here are two better choices right now (and in most situations for most investors).
ConocoPhillips describes itself as "one of the world's largest independent E&P companies." That basically means that it drills for oil and natural gas (exploration and production), which is what is known as the upstream of the broader energy sector. Since getting oil out of the ground is Conocophillips only revenue source, there are some important things that investors need to understand before buying this or any pure-play upstream stock.
Its top and bottom lines are entirely dependent on commodity prices. That's great when energy prices are strong, but it is terrible when energy prices are weak. Since oil is an inherently volatile commodity, prone to dramatic and sometimes swift price swings, ConocoPhillips' financial results and stock price can both be very volatile, too.
