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.

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 $211.2 million.
  • BP traded 29,938 shares today in the pre-market hours as of 7:49 AM.
  • BP is down 2% today from Friday'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 6%. BP has a PE ratio of 5.4. 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 7.7 million shares per day over the past 30 days. BP has a market cap of $132.7 billion and is part of the basic materials sector and energy industry. Shares are up 3.9% year-to-date as of the close of trading on Friday.

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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 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 a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • Net operating cash flow has increased to $7,247.00 million or 33.85% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -13.05%.
  • The current debt-to-equity ratio, 0.47, 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.
  • BP, with its decline in revenue, slightly underperformed the industry average of 19.9%. Since the same quarter one year prior, revenues fell by 21.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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, BP PLC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for BP PLC is currently extremely low, coming in at 8.97%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -5.95% trails that of the industry average.

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