Why BP Is Ready to Rebound

Brian Pacampara, Pacampara, The Motley Fool
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, U.K. (1889)

Market Cap

$129.4 billion

Industry

Integrated oil and gas

Trailing-12-Month Revenue

$375.6 billion

Management

CEO Robert Dudley (since 2010)

CFO Brian Gilvary (since 2012)

Return on Equity (average, past 3 years)

10.6%

Cash/Debt

$19.6 billion/$48.8 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 5,236 members who have rated BP believe the stock will outperform the S&P 500 going forward.

Just last month, one of those bulls, JohnCLeven, listed three good reasons to look into the opportunity:

1. BP has normalized [return on equity] is about 18%-23%, and it's selling for 1.5x tangible book value

2. Seth Klarman is a buyer around $40 and BP is now Baupost's largest position , per gurufocus.

3. A 5.3% dividend yield ... WOW!

If you want market-beating 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 Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends 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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