Latest news with #BPp.l.c
Yahoo
23-05-2025
- Business
- Yahoo
BP p.l.c. (BP) Signs Deal with China's Zhejiang Energy
The energy giant BP p.l.c. (NYSE:BP) confirmed on Thursday that it had signed a contract with China-based Zhejiang Energy Group. The two companies met at the 29th World Gas Conference on May 21, which sees BP supplying Zhejiang Energy with 1 million mt/y for 10 years. BP p.l.c. (NYSE:BP) has recently re-focused its attention to its core business of fossil fuels, from alternative or renewable energy. In 2023, BP and China's Zhejiang Energy group agreed on a joint venture for LNG sales in China. The setting up of an SPAC, with the specific aim of selling trucked LNG, has proven beneficial for both companies. This agreement sees the two companies starting to build on that success and extend their strategic partnership. China's Zhejiang Energy Group has signed similar agreements with other companies. It signed a deal with Exxon to supply 1 million mt/y of LNG for 10 years, which saw deliveries begin in 2022. Experts on the matter stated the deal is also linked with fluctuating global oil prices, with the aim of mitigating risks due to geopolitical tensions between Russia and Europe, as well as changes in supply by OPEC+, led by Saudi Arabia. As the energy company is refocusing its attention (and its investment plan) on the traditional oil and gas business (and away from renewables), there could be an opportunity for BP p.l.c. (NYSE:BP) to either shed non-core renewable assets or strike a merger deal with another production-focused energy company. While we acknowledge the potential of BP, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BP and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and Disclosure: None. Sign in to access your portfolio
Yahoo
05-05-2025
- Business
- Yahoo
Is BP p.l.c. (BP) Among the Top Commodity Producers With the Highest Upside Potential?
We recently compiled a list of the Top 15 Commodity Producers With the Highest Upside Potential. In this article, we are going to take a look at where BP p.l.c. (NYSE:BP) stands against the other Commodity Producer stocks. Commodity producer stocks are shares of publicly listed firms that produce, explore, or distribute commodities. These businesses are frequently interested in metals, mining, agriculture, and energy. Commodity producer stocks are chosen by investors to obtain exposure to both the equity and commodities markets, potentially profiting from heightened interest in either. The commodity market is booming. According to a research report, the size of the global commodity services market was projected at $3.56 billion in 2024 and is anticipated to grow at a compound annual growth rate (CAGR) of 8.65% from 2025 to 2034, from $3.87 billion in 2025 to roughly $8.16 billion by 2034. Regionally, the commodity services industry is dominated by North America, while Asia Pacific is projected to grow at a quick pace. However, the World Bank's April 2025 Commodity Markets Outlook projects that global commodity prices will plummet, falling 12% in 2025 and further 5% in 2026 to their lowest level since 2020. The anticipated drop is being driven by slowing global economic growth and persistently high oil supply. This decline carries risks to economic growth in developing countries, with two-thirds likely to see setbacks, even though it may reduce short-term price pressures associated with rising trade barriers. Notwithstanding the drop, nominal prices will still be higher than they were before the pandemic. Ayhan Kose, the World Bank Group's Deputy Chief Economist and Director of the Prospects Group, stated: 'Commodity prices have whipsawed throughout the 2020s—plummeting with arrival of the COVID-19 pandemic, then surging to record highs after Russia's invasion of Ukraine, and then sinking again,' said Ayhan Kose, the World Bank Group's Deputy Chief Economist and Director of the Prospects Group. 'In an era of geopolitical tensions, surging demand for critical minerals, and more frequent natural disasters, that could become the new normal. Successfully navigating through repeated commodity prices swings will require developing economies to build fiscal space, strengthen their institutions, and improve investment climates to facilitate job creation.' On the other hand, Morgan Stanley, on February 21, highlighted that 2025 is anticipated to be a crucial year for commodity markets, influenced by supply fundamentals, inflation patterns, and dollar fluctuations. Inflation in the United States is still high, falling short of the Federal Reserve's 2% target in December with headline CPI readings of 2.9% and core CPI readings of 3.2%. After the U.S. presidential election, policy changes—particularly related to immigration, deficits, and tariffs—have raised inflation expectations. According to data from the University of Michigan, they rose from 2.8% to 3.3% in just one month. Commodity prices have generally been supported by these conditions. Since late September, the U.S. dollar has risen by almost 8%, in part because of growing interest rates and policy expectations. Global demand for commodities is usually pressured by a strong dollar, but if the currency stabilizes or depreciates, it may eliminate a significant obstacle. Although recent contango suggests sufficient short-term supply, a yield-adjusted perspective reveals markets in backwardation at about 4%, showing ongoing physical tightness. This suggests that inventories for essential commodities remain low, making the market more susceptible to demand shocks. Commodity performance in 2025 is supported by tight supply, high inflation, as well as potential dollar weakness. A large turbine generating power from natural gas, smoke rising in the background. To collect data for this article, we examined companies operating in the commodity sector and then compiled a list of the stocks with the highest upside potential according to Wall Street analysts, as of May 1, 2025. To keep our list relevant, we have only included companies with a market cap of $10 billion and above. The following are the Commodity Producers with the Highest Upside Potential. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). Analysts' Upside Potential as of May 01: 21.84% BP p.l.c. (NYSE:BP) is an oil and gas conglomerate that conducts global oil exploration, production, and refining. It generated 6.9 billion cubic feet of natural gas per day and 1.2 million barrels of liquids in 2024. At the end of 2023, reserves totaled 6.8 billion barrels of oil equivalent, with liquids accounting for 55%. The business runs refineries that can process 1.6 million barrels of oil every day. It is ranked fifteenth on our list of the Best Commodity Stocks. Although BP p.l.c. (NYSE:BP) continues to use the term 'integrated energy company,' its original meaning has changed. They are no longer heavily investing in low-carbon initiatives and leaning into the energy transition as a result of their recent change of strategy. Rather, management is increasing investment in oil and gas and decreasing low-carbon investment after years of inadequate results after the implementation of the transition strategy. This is good news for investors. Earnings for the first quarter of 2025 were below market estimates, while debt levels rose from the end of 2024. The quarter's reported repurchase rate of $750 million fell short of the prior target range. Management expressed confidence in the strategy reset announced in February. Moreover, the firm expanded its resource base by making six exploratory discoveries, including noteworthy ones in the Gulf of Mexico, Trinidad, Egypt, and Namibia. BP p.l.c. (NYSE:BP) also lowered its core operational expenditure by $500 million quarter over quarter, showing its sustained commitment to cost control. Overall, BP ranks 15th on our list of the Top Commodity Producers With the Highest Upside Potential. While we acknowledge the potential of BP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BP but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
01-05-2025
- Business
- Yahoo
Earnings Miss: BP p.l.c. Missed EPS By 56% And Analysts Are Revising Their Forecasts
Last week, you might have seen that BP p.l.c. (LON:BP.) released its quarterly result to the market. The early response was not positive, with shares down 2.1% to UK£3.50 in the past week. Results were mixed, with revenues of US$47b exceeding expectations, even as statutory earnings per share (EPS) fell badly short. Earnings were US$0.043 per share, -56% short of analyst expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. Our free stock report includes 1 warning sign investors should be aware of before investing in BP. Read for free now. Taking into account the latest results, BP's 21 analysts currently expect revenues in 2025 to be US$184.8b, approximately in line with the last 12 months. BP is also expected to turn profitable, with statutory earnings of US$0.52 per share. In the lead-up to this report, the analysts had been modelling revenues of US$176.0b and earnings per share (EPS) of US$0.49 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings. See our latest analysis for BP Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of UK£4.49, suggesting that the forecast performance does not have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values BP at UK£6.54 per share, while the most bearish prices it at UK£3.62. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable. Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 0.4% annualised decline to the end of 2025. That is a notable change from historical growth of 6.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 0.6% annually for the foreseeable future. The forecasts do look comparatively optimistic for BP, since they're expecting it to shrink slower than the industry. The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards BP following these results. Fortunately, they also upgraded their revenue estimates, and our data indicates it is expected to perform better than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple BP analysts - going out to 2027, and you can see them free on our platform here. And what about risks? Every company has them, and we've spotted 1 warning sign for BP you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Business Insider
30-04-2025
- Business
- Business Insider
BP p.l.c. (BP) was upgraded to a Hold Rating at DZ BANK AG
BP p.l.c. (BP – Research Report) received a Hold rating and price target from DZ BANK AG analyst Werner Eisenmann yesterday. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. According to TipRanks, Eisenmann is a 4-star analyst with an average return of 8.2% and a 61.16% success rate. In addition to DZ BANK AG, BP p.l.c. also received a Hold from UBS's Joshua Stone in a report issued yesterday. However, on the same day, Jefferies maintained a Buy rating on BP p.l.c. (LSE: BP). The company has a one-year high of p529.30 and a one-year low of p329.20. Currently, BP p.l.c. has an average volume of 54.46M.
Yahoo
25-04-2025
- Business
- Yahoo
BP p.l.c. (BP): Among Takeover Rumors Hedge Funds Are Buying
We recently published a list of In this article, we are going to take a look at where BP p.l.c. (NYSE:BP) stands against other takeover rumor stocks hedge funds are buying. Hedge funds tend to pile up on a stock that gains or is expected to gain positive attention in a market. And what more could ignite such a frenzy of activity other than whispers of potential takeovers? When combined with subtle market signals and insider movements, these rumors can cause investors to purchase the stock. Income-seeking investors usually keep a close eye on such signs and movements to capitalize on emerging opportunities. READ ALSO: In particular, hedge fund managers, using their vast resources and analytical capabilities, are more receptive to such speculative cues and act upon them. Since investors and the rest of the market tend to generate income by closely following their actions, hedge funds hold influential power in market trajectories. The allure of these rumors lies in their potential to generate substantial returns to shareholders. Those companies that become the target of a takeover or are perceived as a target experience a stock value surge in the market, thus attracting further investor interest. To stay ahead of the curve, hedge funds conduct thorough analyses, including financial statement evaluations, industry trend monitoring, and management behavior assessments, to predict the possibility of such events. Such a proactive approach, in addition to giving them an edge over other investors in the market, also contributes to the evolving nature of financial markets. What prompts the takeover rumors? Loads of factors. In the current environment, as we all know, the new tariff rates and trade wars are the biggest and most significant catalysts for takeover rumors. However, hedge funds also take note of other factors when anticipating a takeover. For instance, the Federal Reserve cut interest rates. After a series of cuts that started in September, the Fed has paused the interest rate adjustments and maintained them between 4.25% and 4.50% since December 2024. The range is not historically low, compared to the near 0% interest rates the Fed announced amid the COVID-19 pandemic. However, larger companies may find it easier and less expensive to fund an acquisition or merger at the current interest levels. On the other hand, the broader market sentiment could also play a vital role in takeover rumors. The expected takeover might get rescheduled or withdrawn, depending on the favorability of the market sentiment. For instance, the recent falls in the stock market might reflect negatively on the market sentiment, discouraging companies from risking an acquisition or takeover. Meanwhile, with their keen insights, hedge funds attempt to identify undervalued assets and potential takeover candidates. In addition to reflecting confidence in market resilience, their actions signify the importance of timely and informed decision-making. We have put together our list by following a specific and straightforward methodology. Primarily, we have identified stocks with takeover rumors that have started or advanced in the past year. All the data used in this regard was taken from financial news, databases, and analyst reports, with all information updated as of April 21, 2025. This criterion is in place to ensure the relevance of the rumor with the hedge fund holdings for a stock. We have also collected information on the hedge fund holdings as of April 21, 2025, from the Insider Monkey database of Q4 2024. Based on this data, we have ranked our picks from 20 to 1, with 20 being the stock with the least number of hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A large turbine generating power from natural gas, smoke rising in the background.A global integrated energy company, BP p.l.c. (NYSE:BP) is located in the United Kingdom and is engaged in oil and gas exploration, refining, marketing, and renewable energy solutions. Their operations extend over 70 countries and cover a range of consumer segments, including retail, industrial, and government customers. BP p.l.c. (NYSE:BP) is transitioning toward a low-carbon portfolio through investments in hydrogen, wind, and EV charging infrastructure, thus setting itself apart from other competitors in the market, including Shell. With ambitious net-zero targets, the company aims to reshape its long-term energy mix in the upcoming years. Speculations have been going around about BP p.l.c. (NYSE:BP) becoming a potential target for takeovers. The company has been underperforming compared to its peers in the market. Additionally, in its most recent quarter in 2024, the company saw its results fall short of market expectations, strengthening the takeover rumors. Concerning the acquirer, analysts believe that rivals for the company with deep enough pockets would make the bid. Though some reports point in the direction of Shell, there has not been any announcement from the two companies to date. According to the Insider Monkey database, 44 hedge funds have stakes in the company's ownership. Strong institutional confidence in a company with declining financials contributes positively to the takeover rumor. Overall, BP ranks 10th on our list of takeover rumor stocks hedge funds are buying. While we acknowledge the potential of BP, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than BP but trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
