BP PLC ● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The share is getting closer to its long-term support in weekly data, at GBp 492, which offers good timing for buyers.
● The close medium term support offers good timing for purchasing the stock.
● Its core activity has a significant growth potential and sales are expected to surge, according to Thomson Reuters' forecast. Indeed, those may increase by 56% by 2019.
● The stock, which is currently worth 2017 to 0.75 times its sales, is clearly overvalued in comparison with peers.
● This company will be of major interest to investors in search of a high dividend stock.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 492 GBp
Weaknesses
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● The company's earnings releases usually do not meet expectations.
● 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.
