Undoubtedly, BP p.l.c. (NYSE:BP) has been one of the most volatile stocks in the market in recent times, and the way it handled Tuesday’s volatility suggests the stock may be poised to rise heading into short-terms. The shares accumulated 0.21 points or 0.5 percent at $42.42 with a light trade volume of 5.017 million shares. After opening the session at $42.54, the shares went as high as $42.64 and as low as $42.33, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $143 billion and now has 3.38 billion shares outstanding. BP p.l.c. (BP) stock has gained 5.42 percent of market value in 21 trading days.
BP stock has a trailing 3-year beta of 0.77, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.77 a share in the trailing twelve months. The stock’s value has surged 11.87 percent year to date (YTD) against a rise of 8.46 percent in 12 month’s time. The company’s shares still trade -11.31 percent away from its 1-year high of $47.83 and 16.92 percent up from 52-week low of $36.28. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
BP p.l.c. (BP) will probably climb 14.97 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $60.56 price as 12-month high target. This represents a whopping 42.76 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $47.71, which represents a return potential of 12.47 percent when compared to the closing price of the stock of $42.42 on Tuesday, February 12. The lowest price target for the stock is $38.11 — slightly more than -10.16 percent from BP’s current share price.
History has shown that shares in BP p.l.c. have gone up on 15 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. Investors will get their next glimpse of BP’s Q1 earnings on April 30. Analysts are forecasting revenue to climb 9.6 percent to $74.4B in the fiscal first quarter, while earnings are seen soaring by nearly 27.27 percent to $0.84 per share. It earned $1.14 per share, better than the $0.85, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $75.7B, better than the $74.4B analysts expected. Earnings are estimated to increase by 95.2 percent this year, 14.65 percent next year and continue to increase by 31.5 percent annually for the next 5 years.
The stock is currently hovering around the first support level of $42.29. Below this, the next support is placed in the zone of $42.15. Till the time, the BP stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 64.25 on daily chart, which may remain a cause for concern. If the price breaks below $42.15 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $42.6 mark may result into a pull-back move towards $42.77 level.
Shares of BP p.l.c. (BP) are trading at a P/E ratio of 15.25 times earnings reported for the past 12 months. The industry BP operates in has an average P/E of 22.38. Its P/E ratio went as low as 13.72X and as high as 1029.75 over the 5-year span.Further, it is sporting a 0.48 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.86. 15.1 percent is the gross profit margin for BP p.l.c. and operating margin sits at 3.7 percent. Along with this, the net profit margin is 2.4 percent.