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Here's Why BP is an Attractive Investment Bet Right Now

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BP plc (BP - Free Report) has witnessed upward earnings estimate revisions for 2021 and 2022 in the past 30 days. The stock, sporting a Zacks Rank #1 (Strong Buy), is likely to see earnings growth of 293.5% this year.

What's Favoring the Stock?

The price of West Texas Intermediate crude is trading at more than the $70-per-barrel mark again, highlighting a substantial improvement from the negative territory hit last April. The massive crude recovery has been driven by the rapid and widespread rollout of coronavirus vaccines.

The massive improvement in oil price is definitely a boon for BP’s upstream operations. Amid the improving oil price scenario, increasing daily oil equivalent production volumes are aiding the company’s bottom line. By this year, the British energy giant is expecting additional net production volumes of 900 thousand barrels of oil equivalent per day, backed by key upstream projects.

BP is expected to gain from its refining business as well. The company has a significant portion of its refining capacities in the United States. In the country, the integrated energy player operates feedstock-advantaged and sophisticated refineries. The refineries are connected to strong logistics and fuels infrastructure. Thus, with considerable presence in the United States, the company is well placed to capitalize on rising fuel demand, backed by the reopening of the economy and wider distribution of vaccines.

Other Stocks to Consider

Other prospective players in the energy space include Whiting Petroleum Corporation (WLL - Free Report) , Continental Resources, Inc. (CLR - Free Report) and PDC Energy, Inc. (PDCE - Free Report) . While Whiting Petroleum and Continental Resources sport a Zacks Rank #1 (Strong Buy), PDC Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Continental is expected to witness earnings growth of 428.2% in 2021.

PDC Energy is likely to see earnings growth of 198% in 2021.