Trade-Ideas LLC identified

BP

(

BP

) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified BP as such a stock due to the following factors:

  • BP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $259.5 million.
  • BP traded 35,722 shares today in the pre-market hours as of 8:00 AM.
  • BP is down 3.3% today from yesterday's close.

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More details on BP:

BP p.l.c. operates as an integrated oil and gas company worldwide. It operates in three segments: Upstream, Downstream, and Rosneft. The stock currently has a dividend yield of 8%. BP has a PE ratio of 4. Currently there are 6 analysts that rate BP a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for BP has been 9.6 million shares per day over the past 30 days. BP has a market cap of $91.0 billion and is part of the basic materials sector and energy industry. Shares are down 3.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates BP as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 25.0% when compared to the same quarter one year prior, going from -$4,407.00 million to -$3,307.00 million.
  • BP PLC has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BP PLC swung to a loss, reporting -$2.12 versus $1.21 in the prior year. This year, the market expects an improvement in earnings ($0.92 versus -$2.12).
  • BP, with its decline in revenue, slightly underperformed the industry average of 32.6%. Since the same quarter one year prior, revenues fell by 33.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • BP's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 28.68%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, BP PLC underperformed against that of the industry average and is significantly less than that of the S&P 500.

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