BP plc : The downward trend should continue

01/14/2020 | 04:03am EST

Jordan Dufee

short sell Target price hit

Entry price : 495.85GBX | Target : 462.5GBX | Stop-loss : 520GBX | 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 GBX 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

© MarketScreener.com 2020

	Stocks mentioned in the article	Change	Last		1st jan.
	AMP LIMITED	-0.32%	1.55		-0.64%
	AT HOME GROUP INC.	3.31%	25.9		62.16%
	BP PLC	0.61%	282.35		10.15%
	BYD COMPANY LIMITED	9.35%	278.4		37.01%
	NEXT PLC	-0.03%	7880		11.23%

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