BP p.l.c. [BP] is following downward trend in the market concluded with the last trading session. The shares of the Energy sector company has a current value of $21.82 after BP shares went down by -1.45% during the last trading session. One of the reasons why Energy stocks may go bearish is decreased momentum in the press.

BP p.l.c. [NYSE:BP]: Analyst Rating and Earnings

Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. On average, stock market experts give BP an Overweight rating. The average 12-month price forecast for this stock is $21.82, with the high estimate being $41.04, the low estimate being $18.66 and the median estimate amounting to $28.68. This is compared to its latest closing price of $22.14.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for BP p.l.c. [BP] is sitting at 3.31. This is compared to 1 month ago, when its average rating was 3.31.

Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on 07/28/2020.

Fundamental Analysis of BP p.l.c. [BP]

Now let’s turn to look at profitability: with a current Operating Margin for BP p.l.c. [BP] sitting at -0.20% and its Gross Margin at 13.90%, this company’s Net Margin is now -1.20. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 9.03, and its Return on Invested Capital has reached 2.57. Its Return on Equity is -3.40%, and its Return on Assets is -1.10%. These metrics suggest that this BP p.l.c. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, BP p.l.c. [BP] has generated a Total Debt to Total Equity ratio of 78.70. Similarly, its Total Debt to Total Capital is 44.04, while its Total Debt to Total Assets stands at 26.24. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 65.95, and its Long-Term Debt to Total Capital is 36.90.

What about valuation? This company’s Enterprise Value to EBITDA is 3.86 and its Total Debt to EBITDA Value is 2.22. The Enterprise Value to Sales for this firm is now 0.47, and its Total Debt to Enterprise Value stands at 0.42. BP p.l.c. [BP] has a Price to Book Ratio of 1.29, a Price to Cash Flow Ratio of 4.76 and P/E Ratio of 18.24. These metrics all suggest that BP p.l.c. is more likely to generate a positive ROI.

BP p.l.c. [BP] has 3.36B shares outstanding, amounting to a total market cap of 73.45B. Its stock price has been found in the range of 15.51 to 43.00. At its current price, it has moved down by -49.26% from its 52-week high, and it has moved up 40.68% from its 52-week low.

This stock’s Beta value is currently 0.85, which indicates that it is 3.52% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 46.75. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is BP p.l.c. [BP] a Reliable Buy?

BP p.l.c. [BP] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.