US up 4 BP25 Jan 2020 12:32
BP tipped in US based on free-cash-flow yield. Apparently, FCF one of the few valuation measures that has worked in the post-financial-crisis world, and energy’s, at 5.7%, is now one of CITIs Overweights for the first time since 2007.
BP looks particularly attractive. The stock has returned just 1.2%, including reinvested dividends, over the past 12 months, and was hit hard after its third-quarter earnings report, when it failed to raise its divi as expected.
BP has FCF yield of 8.5% and trades at just 11.8 times earnings, was recently added to the Jefferies Franchise Picks list, and will soon boost cash returns to investors. Meanwhile, it has a dividend yield of 6.4%, above those of RDSA, Exxon, and Chevron.
Clearly worth a bottom dollar to the yanks ...