BP PLC News and Headlines -
Raymond James analyst James Jenkins, who has been bearish on Exxon Mobil Corp. (XOM) since 2018, has turned bullish on the oil giant after taking into account the improving outlook for the energy industry and the attractive valuation level of the company. According to a research note sent to clients, Jenkins wrote on April 14 :
"With the recent downdraft in the stock (off ~10% over the past month), we think it's the right time to get less negative in our outlook for Exxon Mobil. Q1 2021 earnings indicators show a solid measure of improvement, pushing the company in
Shares of multinational oil production company Chevron Corp. (CVX) fell 4.3% on Friday. The San Ramon, California-based company posted weak fiscal fourth-quarter and full-year 2020 results before market opened.
Chevron's stock is now down 23.5% over the last 12 months after gaining nearly 55% from multiyear lows it reached in March. The company remains unprofitable on a trailing 12-month basis after a disappointing campaign in 2020. However, as the recovery continues, 2021 could see the 141-year-old company return to profitability.
Its forward price-earnings ratio of 23.28 suggests that Chevron is expected to
As weak demand among American consumers continues to be a concern in the recovery of oil prices amidst the Covid-19 pandemic, CNBC reported the commodity is on course for its biggest weekly decline since June.
Brent crude, which serves as the international benchmark, was up 0.6% at $44.35 on Friday, culminating in a 1.6% drop for the week. West Texas Intermediate rose 0.5% to $41.55, prepping for its first weekly drop in five weeks.
Based on these developments, investors may be looking for opportunities in the energy sector that gurus also see value in.
When investors pick stocks whose market capitalization is more than $10 billion and whose price-book ratio stands below 1.5, they increase their chance to discover value stocks.
Thus, value investors may be interested in the following stocks, as they have the above-listed criteria.
The first company that has the criteria is BP PLC (BP), a London-based oil and gas giant.
The company's American Depository Receipts (ADRs) were trading at a price of $21.91 each at close on Aug. 24 for a market capitalization of $74.82 billion and a price-book ratio of 1.04.
The stock has declined 39.64%
I recently discussed the state of the oil industry after what has been an extremely bad quarter. In part two of this series on the energy sector, we will look at how different oil majors have approached the question of dividend payments in an age of falling earnings.
To slash or not to slash?
In part one, I noted that the European oil giants like Royal Dutch Shell (RDS.A)(RDS.B) and British Petroleum (BP) booked huge impairment charges last quarter. By contrast, U.S. giants like Chevron (CVX) and ExxonMobil (XOM) had relatively smaller impairment charges. There
As most investors know, the last six months have not been kind to the energy industry. Oil producers have been hit by a double whammy of oversupply (due to fractures in the OPEC-Russia alliance) and plummeting demand (due to global lockdowns). As a result, oil prices fell to multidecade lows earlier this year, with prices even going negative in some futures markets.
We won't go into the specifics of how this is even theoretically possible, but you don't need to be a professional oil trader to understand that a negative price for a commodity means that producers
ValueAct Holdings, the activist firm founded by Jeff Ubben (Trades, Portfolio), disclosed last week that its top five trades during the first quarter included selling all shares of FedEx Corp. (FDX), boosting its position in LKQ Corp. (LKQ) and Hawaiian Electric Industries Inc. (HE), and new positions in A.O. Smith Corp. (AOS) and BP PLC (BP).
Ubben earned an MBA at Northwestern University Kellogg Graduate School of Management. Prior to founding ValueAct, he managed Blum Capital Partners for over five years.
The San Francisco-based firm acquires stakes
Kahn Brothers (Trades, Portfolio), the firm founded by the late Irving Kahn and his two brothers Alan and Thomas, disclosed this week that its top four buys during the first quarter included a new position in JPMorgan Chase & Co. (JPM) and boosts to Patterson-UTI Energy Inc. (PTEN), ViewRay Inc. (VRAY) and BP PLC (BP).
According to the firm’s website, Kahn Brothers (Trades, Portfolio)’ investment philosophy has, over time, evolved from Benjamin Graham’s original “discount to net asset purchase” model to a contrarian value strategy focusing on margin of safety and long-term capital
To achieve long-term capital appreciation, the fund, which is managed by Beltran de la Lastra, applies key value investing principles that were introduced and used by legends like Benjamin Graham, Peter Lynch and Berkshire Hathaway (BRK.A)(BRK.B) CEO Warren Buffett (Trades, Portfolio). At the beginning of March, the firm announced de la Lastra will be leaving Bestinver next October.
With the investment criteria in mind, the fund established holdings in Just Eat
In these extraordinary times we want to have a more continuous communication than usual, so we will try to keep our entire investor community up to date with the news that concerns us. These are difficult times for all of us, which will pass, but may leave a deep mark on all of us along the way.
First of all, we confirm that at Cobas Asset Management we are working from home and that all procedures are working correctly. Both the registration and cancellation procedures, as well as the daily release of the net asset value and the
Although gurus hold positions in the following companies, their stocks and returns have suffered declines recently. These are the worst-performing stocks over the past six months that have a long-term presence in multiple gurus' portfolios.
Shares of BHP Group PLC (BBL) declined 13.19% over the past six months. The stock is held by six gurus.
The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.23% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.02% and Steven Cohen (Trades,
The firm trimmed 48.68% off its Merck & Co. Inc. (MRK) stake. The portfolio was impacted by -5.50%.
The pharmaceutical company has a market cap of $219.21 billion and an enterprise value of $237.37 billion.
GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 32.99% and return on assets of 11.16% are outperforming 84% of companies in the drug manufacturers industry.
In light of China exempting tariffs on U.S. chemical and oil products, five energy stocks that have high guru buys and dividend yields are Occidental Petroleum Corp. (OXY), Schlumberger Ltd. (SLB), Chevron Corp. (CVX), Exxon Mobil Corp. (XOM) and BP PLC (BP).
The “High Dividend Yield” screen, a GuruFocus Premium feature, lists the stocks with high guru buys over the past three months and with a dividend yield of at least 4% over the trailing 12 months.
U.S. market indexes set new intraday highs as U.S.-China trade deal advances
On Thursday, a few days after the U.S. and China
BP Capital Fund Advisors, the investment firm founded by the late T Boone Pickens (Trades, Portfolio), who passed away in September, disclosed eight new holdings in its third-quarter portfolio earlier this week.
The legendary oil tycoon’s Texas-based firm, which transitioned to a family office structure last year, operates two energy-focused mutual funds. When picking stocks, the portfolio managers look for companies that will benefit from the changing landscape of the U.S. oil and gas industry.
Based on these criteria, BP Capital’s five largest new buys for the quarter were Chevron Corp. (CVX), BP PLC (BP), Nutrien Ltd.
BP PLC (BP) announced on Friday that CEO Bob Dudley is stepping down soon after the company delivers its full-year 2019 results next February.
Dudley, who has been with the British oil and gas giant for 40 years and held the top position for almost a decade, will be succeeded by Bernard Looney, who is currently the chief executive of the upstream division.
In a statement, Dudley, who will officially retire on March 31, 2020, said it was the “privilege of a lifetime” to serve as BP’s CEO.
“I have worked with so many committed people from all over
While gurus hold positions in these companies, their share prices and returns continue to decline. The following are the worst-performing stocks over the past six months with a long-term presence in more than five gurus' portfolios.
Shares of Salesforce.com Inc. (CRM) declined 5.85% over the past six months. The stock is held by 22 gurus.
The company, which provides customer relationship management applications, has a $133.35 billion market cap. The stock was trading with a price-earnings ratio of 127.77. As of Thursday, the share price of $152.05 was 9.26% below
According to the GuruFocus All-in-One Screener as of Wednesday, the following companies have high dividend yields but performed poorly over the past 12 months.
Total SA's (TOT) dividend yield is 5.4% with a payout ratio of 0.72. Over the last 52 weeks, the stock has fallen 17.62%. Shares are trading with a price-book ratio of 1.25 and a price-earnings ratio of 14.01.
The oil and gas company has a market cap of $139.44 billion and a profitability and growth rating of 5 out of 10. The return on equity of 9.29% and return
According to the GuruFocus All-In-One Screener, the following energy stocks are popular among gurus as of Sept. 23.
Exxon Mobil Corp. (XOM) is held by 24 gurus
The company, which produces and refines oil around the world, has a market cap of $306.04 billion. Its revenue of $271 billion has fallen at a rate of 4% over a 10-year period.
The stock was trading with a price-earnings ratio of 17.40 on Monday. The share price of $72.14 was 17.20% below the 52-week high and 11.88% above the 52-week low. Over the last 10
As of Friday, the following companies offer a forward dividend yield that more than doubles the S&P 500 Index's yield of 1.88%. Thus, dividend investors may want to consider buying shares of these stocks.
The first company is BP PLC (BP). The shares closed at $37.45 on Friday for a market capitalization of $125.74 billion. The stock has a forward dividend yield of 6.57% versus the industry median of 4.52%.
The GuruFocus chart shows BP's current trailing annual dividend yield is high compared to its historical value, indicating it is profitable.
On Sept. 20, the London-based
Irving Kahn was one of the legendary value investors of the last century. When he finally retired at 109 (just before he died), Kahn had been investing for nearly 100 years. He saw some of the greatest market crashes in history, including the 1929 Wall Street crash. In the crash, he made a small fortune betting against Magma Copper, which he believed was egregiously overvalued.
After observing the carnage of 1929, Kahn built a strategy based on buying high-quality companies with strong balance sheets at low prices, avoiding leverage and living a modest lifestyle. He continued to develop this style