BP: A $70 Stock In 5 Years

In comparison to the rest of the oil and gas industry, BP is one of the most attractive investments on the market. BP’s current position will appeal to investors interested in healthy dividends and potential growth. BP’s stock price will begin to rise soon so the time to invest in shares is sooner opposed to later before the negative stigma has worn off from the cataclysmic oil spill in the Gulf of Mexico. BP is clearly undervalued, as its stock price does not reflect its true worth right now. The figures on its balance sheet and earnings reports are not stellar but there are a few key factors that indicate that this is a healthy long-term investment in the least.

Right now BP’s stock price is hovering around $38. The 52-week range has been from $32 to almost $48, while the 50-day and 200-day moving averages have been $41 and $43 respectively. This indicates that the stock price is possibly at its lowest. The market cap is around $119 billion while the enterprise value is $149 billion, this suggests that there is more room for BP to grow and improve without any changes to its current operations. The price-to-earnings ratio is favorable while hovering around five or six; this is below the industry average and well below some of its major competitors in the industry. The sales numbers are increasing each quarter and the price-to-sales ratio is .31, which is very favorable and almost a third of its competitors in the industry.To continue reading, click here.

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