British oil giant, British Petroleum, on Tuesday reported that it has more than doubled it’s bottom-line in the third quarter, bolstered by stronger oil prices.
With oil prices hitting a four-year high in the last quarter, the company reported a ~300% jump in its revenue from $20 billion to $80.8 billion (£63 billion), compared to the same period in the previous year.
The underlying profit of the company for the three month period ending September 30 grew by more than 100%, from $1.86 billion to $3.8 billion, over the three-month period in the previous quarter. The company also declared a dividend of 10.25 cents per share for the third quarter, 2.5% higher than a year earlier.
Considering the tensions surrounding the oil markets, owing to the looming U.S. sanctions on Iran (OPEC's third largest oil producer) and the heightened tensions between Washington and Saudi Arabia (the world's biggest oil exporter), BP's estimated outperformance is considered to be a big news for the industry.
The 10-day RSI Oscillator for BP moved out of overbought territory on April 15, 2024. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 instances where the indicator moved out of the overbought zone. In of the 29 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Moving Average Convergence Divergence Histogram (MACD) for BP turned negative on April 16, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BP broke above its upper Bollinger Band on April 02, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Momentum Indicator moved above the 0 level on April 26, 2024. You may want to consider a long position or call options on BP as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 50-day moving average for BP moved above the 200-day moving average on March 27, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BP advanced for three days, in of 301 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 267 cases where BP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 66, placing this stock worse than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.520) is normal, around the industry mean (1.218). P/E Ratio (7.366) is within average values for comparable stocks, (24.146). BP's Projected Growth (PEG Ratio) (13.379) is slightly higher than the industry average of (4.841). Dividend Yield (0.045) settles around the average of (0.107) among similar stocks. P/S Ratio (0.534) is also within normal values, averaging (0.979).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a producer of petroleum, natural gas and related products
Industry IntegratedOil