BP PLC (BP): Today's Featured Energy Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

BP ( BP) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day down 0.6%. By the end of trading, BP fell 42 cents (-1%) to $40.66 on light volume. Throughout the day, 4.7 million shares of BP exchanged hands as compared to its average daily volume of seven million shares. The stock ranged in price between $40.52-$40.96 after having opened the day at $40.76 as compared to the previous trading day's close of $41.08. Other companies within the Energy industry that declined today were: Ivanhoe Energy ( IVAN), down 13%, Syntroleum Corporation ( SYNM), down 12.3%, PostRock Energy ( PSTR), down 7.2%, and Helmerich & Payne ( HP), down 5.5%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

BP p.l.c. provides fuel for transportation, energy for heat and light, lubricants to engines, and petrochemicals products. BP has a market cap of $130.76 billion and is part of the basic materials sector. The company has a P/E ratio of 410, above the S&P 500 P/E ratio of 17.7. Shares are down 1.3% year to date as of the close of trading on Friday. Currently there are seven analysts that rate BP a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates BP as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

On the positive front, GMX Resources ( GMXR), up 15.9%, Adams Resources & Energy ( AE), up 11.6%, Constellation Energy Partners ( CEP), up 10.8%, and Bill Barrett Corporation ( BBG), up 5.4%, were all gainers within the energy industry with Cabot Oil & Gas Corporation ( COG) being today's featured energy industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null