BP stock shows leadership, RS rating reaches 81

oil major BP (BP) in March announced a $26 billion impairment charge after exiting its joint venture with Russia’s state-owned Rosneft. Despite this, BP stock has continued to soar this year and hit a two-year high in early June. Then it consolidated in the middle of the bear market. However, BP stock has held up better than most during the recent market turmoil. And on Tuesday, the IBD relative strength rating for BP stock rose to 81 from 75 the previous day, crossing a key threshold.


The rise to an RS rating of 81 is important because market research shows that market winners tend to have an RS rating of 80 or higher when they launch their biggest climbs.

Composite rating of BP shares close to best

The exit from the nearly 20% stake it has held in Rosneft since 2013 and its removal from the company’s board of directors are just the latest in a series of changes for the British company BP. It adjusted its portfolio, selling some assets in Canada while buying others, for example. It is also investing heavily in clean energy, including operating one of the world’s largest renewable energy and green hydrogen centers based in Western Australia.

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Among its other key ratings, BP has an EPS rating of 78. This decent but not excellent rating is due to weak revenues at the start of the pandemic. Over the past four quarters, it has seen EPS growth ranging from 142% to over 1,000%.

Additionally, its action has an outstanding composite rating of 96, the best possible 99. IBD’s composite rating combines five separate proprietary fundamental and technical performance ratings into one easy-to-use rating. The best growth stocks have a composite rating of 90 or higher.

BP stock is trying to complete a consolidation with a buy point of 34.40. See if the stock can break out in volume at least 40% above the average.

Profit jumped 146% in the last quarter

The company reported a 146% increase in earnings last quarter to $1.92 per share. Sales increased 40% year over year to $51.2 billion. BP plans to release its second quarter results on August 2.

BP stock ranks 9th among its peers in the Oil & Gas-Integrated industry group. EQT (EQT) and Imperial Oil (IMO) are also among the highest rated stocks in the group.

When looking for the best stocks to buy and watch, keep an eye on relative price strength.

This proprietary rating from Investor’s Business Daily tracks market leadership with a score from 1 (worst) to 99 (best). The rating shows how a stock’s price behavior over the past 52 weeks holds up against all other stocks in our database.

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