Bernstein cuts ConocoPhillips and Diamondback ratings as Iran de-escalation looms Sam Boughedda Thu, November 12, 2026 at 8:29 AM EST 2 min read CL=F +0.06% COP +1.18% FANG +1.11% DVN +0.39% ^GSPC +1.31% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Investing.com -- Bernstein downgraded ConocoPhillips (NYSE: COP), Diamondback Energy (NASDAQ: FANG) and Devon Energy (NYSE: DVN) to Market-Perform, saying oil stocks may struggle as tensions between the U.S. and Iran ease after the midterm elections.
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Analyst Bob Brackett said de-escalation now looks more likely than escalation. He expects oil prices to normalize, though at levels above where they were before the conflict.
Oil and gas stocks were the best-performing sectors in the S&P 500 before the midterms. Brackett noted that multi-year runs of outperformance are rare for the sector, and that corrections in oil stocks can happen quickly.
"We worry that profit taking into year-end or rotation into beaten-down sectors may occur," he wrote.
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Bernstein expects oil prices to average more than $90 a barrel this year, with Brent at $90 now.
"An $80/bbl world next year makes for great returns for oil companies but not great returns for oil equity investors," the analyst said.
Instead, Bernstein recommends a defensive barbell. It favors Exxon Mobil (NYSE: XOM), the largest integrated oil company, which should benefit from refined fuel prices that tend to hold up better than crude.
It also likes natural gas producers Expand Energy (NASDAQ: EXE) and EQT (NYSE: EQT), saying gas prices around $3 per thousand cubic feet are below mid-cycle levels and offer an attractive entry point.
Brackett added that valuations across his coverage are close to five-year averages, leaving little cushion if earnings fall along with oil prices.
Bernstein cuts ConocoPhillips and Diamondback ratings as Iran de-escalation looms
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