The Zacks Analyst Blog Highlights BP, Core Laboratories and Global Partners
For Immediate Release
Chicago, IL – September 12, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: BP plc BP, Core Laboratories N.V. CLB and Global Partners GLP.
Here are highlights from Monday’s Analyst Blog:
BP to Proceed with Clean Energy Plan, Reduce Oil & Gas Output
BP plc will no longer phase out its energy transition strategy as investors have been expressing disapproval of the company veering away from its extensive plan to diminish hydrocarbon production, per a Reuters report.
BP’s CEO Bernard Looney outlined ambitious plans for the British energy giant to achieve net-zero emissions by 2050 and invest billions in low-carbon energy.
Earlier this year, BP scaled down plans to reduce hydrocarbon production after soaring prices lifted the company’s profits to multi-year highs. BP is the only major oil company seeking to reduce production by the end of this decade.
BP relies heavily on oil and gas as its primary source of revenue, with a substantial margin. However, BP will not further slow its shift away from hydrocarbons. BP plans to invest $55-$65 billion in its new transition businesses, including EV charging, biofuels, hydrogen, wind and solar energy, by 2023-2030.
Amid heightening climate concerns, the world is on a decarbonization mission. This has resulted in a significant shift toward renewable energy sources, which are becoming increasingly crucial in battling carbon emissions. Renewable energy offers a more sustainable alternative to traditional fossil fuels.
Looney dismissed the criticism from investors who argue that BP’s aggressive spending on low-carbon fuels and renewables yields returns far inferior to those of hydrocarbons in the current market. BP is planning to grow in sectors, which will not be correlated to the oil price.
Renewables and low-carbon constitute a small portion of the company’s revenues. In the first half of 2023, the transition growth engines accounted for $700 million of $23 billion in core BP earnings. Looney expects the transition businesses’ earnings to increase to $3-$4 billion by 2025 and $12 billion by 2030.
Price Performance
Shares of BP have outperformed the industry in the past three months. The stock has gained 11.2% compared with the industry’s 8.1% growth.
Zacks Rank & Stocks to Consider
BP currently carries a Zack Rank #5 (Strong Sell).
Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Core Laboratories N.V.’s strong presence in the emerging shale plays and its global footprint will provide for steady growth rates, going forward. CLB’s technology-heavy portfolio of proprietary products and services gives it the opportunity to optimize production from new and existing fields.
Core Labs has witnessed upward earnings estimate revision for 2023 and 2024 in the past 60 days. The consensus estimate for CLB’s 2023 and 2024 earnings per share is pegged at 87 cents and $1.17, respectively.
Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 60 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
The Zacks Consensus Estimate for Global Partners’ 2023 and 2024 earnings per share is pegged at $3.46 and $3.69, respectively. GLP currently has a Zacks Style Score of A for Value and Growth.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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BP p.l.c. (BP) : Free Stock Analysis Report
Core Laboratories Inc. (CLB) : Free Stock Analysis Report
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