BP plc (ADR) (BP)

TheHarm (89.16) Submitted: 1/25/08 12:07 PM : Start Price: $62.23 BP Score: 4.57

P/Sales-0.7x

With this low of a p/s ratio this company is on sale. It is also trading near its 52-week low, being further indicative of that fact.

Although its closest competitors have posted better numbers they're not blowing away this company by any means, and not trading nearly as low in relation to p/s. This price is absolutely unjustified.

Also, the dividend yield for BP is around 4.00%, which is a nice almost guaranteed chunk of change.

Take all this in consideration with the fact that oil & gas will only continue to increase over the next 5-10 years and that BP is also making large strides to become more green, sharing a nice play in both types of markets, widening its moat.

I think this an excellent anchor for anyone's portfolio and I'd expect to see a nice increase over the next 3-5 years of perhaps 15-20% on average y-to-y. Especially great if your portfolio lacks a stable energy play.

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