Pre-Market Activity Shows Heavy Volume And Movement For BP (BP)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified BP ( BP) as a pre-market mover with heavy volume 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 $449.9 million.
  • BP traded 1.2 million shares today in the pre-market hours as of 8:51 AM, representing 10.1% of its average daily volume.

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More details on BP:

BP p.l.c. provides fuel for transportation, energy for heat and light, lubricants to engines, and petrochemicals products worldwide. The stock currently has a dividend yield of 6.9%. BP has a PE ratio of 4.7. Currently there are 6 analysts that rate BP a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for BP has been 7.4 million shares per day over the past 30 days. BP has a market cap of $106.6 billion and is part of the basic materials sector and energy industry. Shares are down 26.4% year-to-date as of the close of trading on Tuesday.

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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 reasonable 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.

Highlights from the ratings report include:
  • Net operating cash flow has increased to $9,399.00 million or 48.43% when compared to the same quarter last year. In addition, BP PLC has also vastly surpassed the industry average cash flow growth rate of -1.58%.
  • The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.
  • 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. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, BP PLC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for BP PLC is currently extremely low, coming in at 11.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.37% trails that of the industry average.

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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