What changed
$BP — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $39.6B | EPS $1.24 vs $0.93 🟢
💡 Consensus expects mean-reverting oil earnings and underestimates BP's trading and operational efficiency, leading to an unjustified discount relative to historical multiples and peers. The market treats high current cash yields as unsustainable, but evidence from the recent beat suggests otherwise.
📉 Reward/risk: 2.2:1
🏢 Business Quality: 6/10 - Integrated oil major with diverse upstream/downstream, trading, and renewables; quality is moderate due to commodity dependency, but balance sheet is solid and capital returns are strong.
📊 Valuation: cheap — P/E of 7.9x on annualized Q1 EPS (vs. peer ~10x and historical 8-12x); EV/EBITDA likely sub-4x; FCF yield well above 10%; triangulation...
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/BP0622