Here's Why You Should Add BP To Your Portfolio Right Away
Zacks Investment Research | Nov 08, 2017 02:11AM ET
On Nov 7, BP (LON:BP) Plc (NYSE:BP) was upgraded to a Zacks Rank #2 (Buy).
Why the Upgrade?
Along with third-quarter 2017 results, BP announced expectations of a sequential improvement in production during fourth-quarter 2017 on project ramp-ups.
The British energy giant commenced natural gas production at the Khazzan field in Oman. The project, expected to have an inventory of 300 drilling wells, is the largest start-up by BP in 2017. Also, it is the sixth project start-up among the seven new this year.
All the projects are likely to take BP closer to its target of adding 800,000 barrels of oil equivalent every day by 2020.
We appreciate the company’s renewed share repurchase program, reflecting BP’s improving financial strength on the back of a healthy crude pricing scenario. The integrated energy player will likely start repurchasing stocks in the October-to-December quarter of 2017. Also, the company’s current dividend yield of 5.7% is higher than 4.1% of the Zacks Oil International Integrated industry .
Moreover, the company’s pricing chart is impressive. Year to date, BP has rallied 10% against 5.7% gain of the industry. Also, efficiency of the company’s drilling operations is improving as reflected by the steady decline in non-productive time since 2012.
Other Stocks to Consider
A few better-ranked energy players are Par Pacific Holdings Inc. (NYSE:PARR) , China Petroleum & Chemical Corp., or Sinopec (NYSE:SNP) and Northern Oil and Gas, Inc. (NYSE:NOG) . Par Pacific and Sinopec sport a Zacks Rank #1 (Strong Buy), while Northern Oil carries a Zacks Rank #2. You can see .
Headquartered in Houston, TX, Par Pacific managed to beat the Zacks Consensus Estimate in three of the last four quarters, the average earnings surprise being 195.26%.
Headquartered in Beijing, Sinopec is a leading integrated energy player. The company will likely witness year-over-year earnings growth of 59.1% in 2017.
Based in Minnetonka, MN, Northern Oil is an upstream energy player. The company’s 2017 revenues are estimated to grow 44.1%.
Wall Street’s Next Amazon (NASDAQ:AMZN)
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Get The News You Want
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.