BP Plc (NYSE:BP): Investor sentiment runs hard against a company still tarnished by the Deepwater Horizon accident in the Gulf of Mexico, but the effects of the incident have fallen short of the most pessimistic predictions and the company should not be dismissed offhand- after all, an investor who had bought into Exxon Mobil after the Exxon Valdez would be up 660% today, about twice the return of the S&P 500. And BP looks quite appealing to a value investor. Its trailing price-to-earnings multiple is 5.2, with forward multiples rising to 6.8; enterprise value is under four times trailing EBITDA. The stock also pays a 4.6% dividend yield; with interest rates where they are, investors may as well be getting a free bond along with their cheap stock. BP is a textbook value stock and leads the ten most popular energy stocks among hedge funds among stocks which are still traded in the market (El Paso’s acquisition has since been completed). You should visit Insider Monkey for the full article about energy stocks.
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