BP plc BP is a leading integrated energy company and is likely to see earnings growth of almost 4% this year.
What's Favoring the Stock?
West Texas Intermediate crude price is hovering around $85 per barrel, which is highly favorable for BP’s exploration and production operations. The energy major has a vast pipeline of key upstream projects that are either in operation or yet to start activities this year or beyond.
BP is also leading the energy transition race. The company is planning to become a net-zero emissions player by 2050 or earlier. The integrated company intends to invest and create its renewable energy generation capacity of 20 gigawatts by 2025.
BP, carrying a Zacks Rank #3 (Hold), also has a strong presence in refining and marketing spaces, providing support during periods of business turmoil and low oil prices.
Risks
Due to its strong presence in the upstream energy space, the company’s exploration and production operations are exposed to volatility in oil and natural gas prices.
Stocks to Consider
Some better-ranked energy companies are SunocoLP SUN, Shell plc SHEL and Murphy USA Inc. MUSA. While Sunoco and Murphy sport a Zacks Rank #1 (Strong Buy), Shell carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco, the leading independent fuel distributor in the United States, has a stable business model and relatively lower exposure to commodity price volatility. This is because the partnership distributes fuel to branded distributors under long-term contracts.
Shell also has the ambitious target of becoming a net-zero emissions energy player by 2050 or earlier. By 2030, the integrated energy company plans to lower absolute emissions by 50%.
Murphy USA is a renowned retailer of gasoline and convenience goods, distinguished by its adaptable business model that effectively enhances profitability during periods of economic expansion and recession.
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BP p.l.c. (BP) : Free Stock Analysis Report
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Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
