4-Star Stocks Poised to Pop: BP
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, integrated oil giant BP (NYS: BP) has earned a respected four-star ranking.
With that in mind, let's take a closer look at BP's business and see what CAPS investors are saying about the stock right now.
BP facts
Headquarters (founded) | London (1889) |
Market Cap | $120.6 billion |
Industry | Integrated oil and gas |
Trailing-12-Month Revenue | $337.4 billion |
Management | CEO Robert Dudley (since 2010) CFO Dr. Byron Grote (since 2002) |
Return on Equity (average, past 3 years) | 10.5% |
Cash/Debt | $20.16 billion / $46.89 billion |
Dividend Yield | 4.2% |
Competitors | Chevron (NYS: CVX) ConocoPhillips (NYS: COP) ExxonMobil (NYS: XOM) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 93% of the 5,133 members who have rated BP believe the stock will outperform the S&P 500 going forward. These bulls include BlackBart12 and All-Star TMFDeej, who is ranked in the top 1% of our community.
Just last month, BlackBart12 tapped BP as a slick selection:
This stock does not want to go down from its current level. The dividends will return to at least near former levels and when they do, the stock will react positively. Problems in the Gulf will continue to be more and more of a distant, albeit bad, memory (think Exxon Valdez).
In fact, BP currently sports a particularly paltry forward P/E of 5.1. That represents a clear discount to rivals Chevron (6.7), Conoco (7.0), and Exxon (7.8).
CAPS All-Star TMFDeej elaborates on the bargain opportunity:
It's difficult to like BP as a company, but it sure is cheap ... even after its post-disaster rally. Even with the potential damages from the mess that it helped create in the Gulf. ... Plus, it's possible that [Transocean] will end up having to pay for some of the mess and BP won't be on the hook all by itself.
I toyed with buying BP at the height of the disaster, but eventually decided to place my bet on [Ensco International]. That worked out well, but now that there is a little less uncertainty BP looks like an interesting bet.
What do you think about BP, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track BP?Add it to your watchlist.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Chevron. The Motley Fool owns shares of Ensco and Transocean. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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