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 0.9%. By the end of trading, BP fell $0.69 (-1.6%) to $42.60 on average volume. Throughout the day, 6,504,777 shares of BP exchanged hands as compared to its average daily volume of 5,444,200 shares. The stock ranged in price between $42.47-$43.05 after having opened the day at $42.95 as compared to the previous trading day's close of $43.29. Other companies within the Energy industry that declined today were: Inergy L.P ( NRGY), down 38.2%, BMB Munai ( BMBM), down 25.0%, Zion Oil & Gas ( ZN), down 20.8% and New Concept Energy ( GBR), down 8.7%.
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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 $137.5 billion and is part of the basic materials sector. The company has a P/E ratio of 432.6, above the S&P 500 P/E ratio of 17.7. Shares are up 4.0% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate BP a buy, 1 analyst rates it a sell, and 5 rate it a hold.

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

On the positive front, U.S. Energy ( USEG), down 12.0%, Andatee China Marine Fuel Services Corporat ( AMCF), down 9.8%, Harvest Natural Resources ( HNR), down 6.5% and MV Oil ( MVO), down 5.8% , were all gainers within the energy industry with Linn Energy ( LINE) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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