BP plc

BP.
Delayed London Stock Exchange - 01/17 05:36:14 pm
496.4GBp
-0.29%

BP plc : The downward trend should continue

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Jordan Dufee
Analyst

Strategy published on : 01/14/2020 | 04:03

short sell
Live

Entry price : 495.85GBp
Target : 462.5GBp
Stop-loss : 520GBp
Potential : 6.73%

The technical chart pattern of stocks in BP plc suggests a continuation of the underlying downward trend, which has already been in place for a number of trading sessions.
Investors should open a short trade and target the GBp 462.5.

Strengths

● The company shows low valuation levels, with an enterprise value at 0.54 times its sales.

● This company will be of major interest to investors in search of a high dividend stock.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.


Weaknesses

● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.

● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

● The company does not generate enough profits, which is an alarming weak point.

● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.

● For the past seven days, analysts have been lowering their EPS expectations for the company.

● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.

● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.

● The underlying tendency is negative on the weekly chart below the resistance at 508.9 GBp

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