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 (NYSE: 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 |
$138.8 billion |
| Industry |
Integrated oil and gas |
| Trailing-12-Month Revenue |
$362.2 billion |
| Management |
CEO Robert Dudley (since 2010)
CFO Dr. Byron Grote (since 2002) |
| Return on Equity (Average, Past 3 Years) |
9.2% |
| Cash/Debt |
$18.3 billion / $45.3 billion |
| Dividend Yield |
3.9% |
| Competitors |
Chevron (NYSE: CVX )
ConocoPhillips (NYSE: COP )
ExxonMobil (NYSE: XOM ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 5,210 members who have rated BP believe the stock will outperform the S&P 500 going forward. These bulls include Slyfox666 and glassbd86.
Earlier this fall , Slyfox666 tapped BP as a slick value pick:
Should reach a price of $65 per share within 3 years just to reach the P/E of its industry group. Also, the dividend yield is now about 4%. ... There is strong pressure in UK for BP to restore the dividend to its old, or higher, level.
In fact, BP currently sports a cheapish P/E of 6.0. That represents a discount to competitors Chevron (7.5), Conoco (9.3), and Exxon (8.3).
CAPS member glassbd86 elaborates on the bargain opportunity:
The problem with bad news is that people grossly overstate the potential impacts. Did BP lose $100 billion in value during the oil spill? Probably not. $20 billion? Sure. $50bn? Quite possibly. But the market priced in $100bn, and soon decided it wasn't that bad. ...
BP is looking attractive again. The dividend has returned, albeit at a much smaller amount, but one that looks attractive given the price. Right now the biggest concern to the industry seems to be temporary commodities weakness. I say temporary.
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.
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