Why BP Is Poised to Bounce Back

Updated

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 has earned a respected four-star ranking.

With that in mind, let's take a closer look at BP and see what CAPS investors are saying about the stock right now.

BPfacts

Headquarters (founded)

London (1889)

Market Cap

$130.4 billion

Industry

Integrated oil and gas

Trailing-12-Month Revenue

$371.8 billion

Management

CEO Robert Dudley (since October 2010)

CFO Brian Gilvary (since January 2012)

Return on Equity (average, past 3 years)

11.6%

Cash / Debt

$16.4 billion / $49.1 billion

Dividend Yield

5.3%

Competitors

Chevron

ExxonMobil

Royal Dutch Shell


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 5,244 members who have rated BP believe the stock will outperform the S&P 500 going forward.

This past summer, one of those Fools, TulipSpeculator1, succinctly summed up the BP bull case for our community:

After the company's problems in the Gulf of Mexico this stock fell off a cliff but the price has not recovered to pre-spill levels. Despite the costs associated with the spill, the sheer size of this oil giant has saved it from bankruptcy and provides protection from future liabilities associated with this event. For the future, rising oil costs should increase profits and the clout of big oil in Washington should prevent this company from being regulated in ways that could reduce profits.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, BP may not be your top choice.

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The article Why BP Is Poised to Bounce Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of ExxonMobil. Motley Fool newsletter services recommend Chevron. 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 Motley Fool has a disclosure policy.

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