RYDAF - 3 Reasons To Buy BP For 2024
2024-02-20 11:18:41 ET
Summary
- BP has underperformed in the past year, but a 6.6% price jump on its recent results indicates that the tide can turn in 2024.
- With a comfortable dividend payout ratio and the potential for an earnings upside this year, dividends can continue to grow while increased share buybacks can also bump up the price.
- While its slow transition to cleaner energy is a long-term concern, going by BP's forecasts, for now, the stock looks good based on possible returns to investors and market multiples.
Compared to its UK-based peer Shell plc ( SHEL ), the oil and gas stock BP p.l.c. ( BP ) has underperformed in the past year. Not only has its price declined by 13% even as Shell has risen by a small 2.7%, but the total returns are negative too (see chart below)....
3 Reasons To Buy BP For 2024