When considering what names to put on your watchlist, focus on stocks with an 80 or higher RS Rating. BP stock just met that criteria with a new score of 83.
Oil stocks had a huge run after Russia attacked Ukraine, and the U.S. and Europe tried to shut off the Russian oil spigot as part of sanctions. That was a boon to oil major BP, Exxon Mobil, Chevron, Shell and other oil companies. Oil prices ran up well past $100 a barrel and topped $5 a gallon at the pump. Now they've rapidly fallen below $100. Where do we go from here? The outlook is uncertain.
Meanwhile, BP continues posting strong profit and sales gains. The company saw both earnings and sales growth rise last quarter. Earnings per share grew 214% last quarter, to $2.61. That was up from 146% year-over-year growth the prior quarter. Revenue grew 85% to $69.5 billion in its latest quarter, up from 40% growth the prior quarter.
BP Stock Among Top 5% Overall
It's important to note that the market's biggest winners often have an 80 or better RS Rating in the early stages of their moves. In addition to topping that benchmark, BP stock has an outstanding 95 Composite Rating and a 79 EPS Rating. Look for that rating to improve based on stronger profit growth in recent quarters. One yellow flag; BP has a D+ Accumulation/Distribution Rating. That indicates funds are selling more shares than buying.
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BP stock is trying to complete a consolidation with a 34.40 entry. See if the stock can clear the breakout price in volume at least 40% higher than normal.
Peers In Oil & Gas Group
BP stock earns the No. 6 rank among its peers in the Oil & Gas-Integrated industry group. New Fortress Energy and Petroleo Brasileiro are also among the group's highest-rated stocks.
As you try to find the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's unique Relative Strength Rating measures share price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks holds up against all the other stocks in our database.
