BP Stock Has Seen the Second-Best Recovery in 2019


Nov. 20 2020, Updated 4:25 p.m. ET

BP’s returns

BP (BP) stock has seen the second-best recovery in 2019, led only by Suncor Energy (SU). We saw in the previous article that Suncor stock has risen 13.3% since January 2. Now, let’s review BP’s performance.

BP stock has risen 3.9% since January 2, lower than the broader market indicator, the SPDR S&P 500 ETF (SPY), which has risen 6.2% in the same period. BP has risen more than ExxonMobil (XOM) stock, which is up 2.9% since January 2.

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BP’s moving averages

On January 2, BP’s 10-day moving average was 3.9% below its 30-day moving average. However, now, BP’s 10-day moving average is 2.7% above its 30-day moving average because of a 6.6% rise in its 10-day moving average. The crossover indicates short-term technical bullishness.

How is BP stock positioned after its recent surge?

BP is trading at a forward PE of 12.4x, below the peer average of 14.1x. The lower valuation that the market has given BP could be due to its debt position. Nevertheless, BP’s debt position has been improving in the past few quarters.

BP’s EPS are expected to rise 95% in 2018, much higher than the peer average of 57%. The company is expected to post its earnings results on February 5.

BP’s current dividend yield stands at 6.1%, higher than the peer average of 5.0%. BP is buying back shares to offset scrip dilution. In the first nine months of 2018, BP’s total share buybacks stood at $0.3 billion.

Overall, after its recent recovery, BP stock seems well placed, with a higher dividend yield, a higher growth estimate, and a lower valuation than its peers.

In the next article, we’ll evaluate ExxonMobil’s returns.


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