Cash is pouring into these cheap value stocks.

Image Source: Getty Images

Last week, the third most popular stock that investors bought through Hargreaves Lansdown was BP (LSE: BP). It wasn’t even in the top five most-sold stocks, which suggests that money is flowing into value stocks right now. With BP at a 52-week low, is now the time to buy?

Recent Issues

First, let’s look at why the stock has fallen 20% over the past year. Part of it is due to fluctuations in oil prices. As one of the world’s largest oil and gas companies, fluctuations in commodity prices can help or hurt stock performance.

Unfortunately, oil prices have been falling recently. WTI crude oil has fallen 6.5% in the past month alone. OPEC, the oil regulator, has continued to reduce production levels due to concerns about oversupply in the market. Ultimately, lower prices mean BP will be less profitable when refining and selling oil-related products.

Another issue is the ongoing slowdown in China. As one of the world’s largest consumers of oil and gas, a decline in demand in this key market is not good news for BP.

Why do you think the price is good?

Despite these issues, investors clearly feel that this is a buy-in. One reason for this is the decline in the price-to-earnings ratio. With the stock price down, this ratio is now just 6.17. This is below the benchmark figure of 10 that I use as fair value. Therefore, this could indicate that the stock is undervalued and worth buying.

Also, let's not forget that despite the bad news about oil prices, the company is doing well in the factors it can control. The recent second quarter results showed an underlying profit of $2.8 billion compared to $2.7 billion in the previous quarter. It also succeeded in reducing net debt and secured cash flow of $500 million, which allowed operating cash flow to reach $8.1 billion.

This means that the business is performing well and the stock price is likely to recover as oil prices begin to recover.

Be patient right now

I agree that stocks are a good value right now, but I still have concerns. I don't see any immediate upside for oil prices. Rumors of a ceasefire in the Middle East are likely to weaken oil prices even further. The negative sentiment in the stock market last week could easily spill over into commodities.

So I want to buy BP stock, but not now. I'll be patient and come back in a month and see how things go.

Sources 1/ https://Google.com/ 2/ https://www.fool.co.uk/2024/09/09/cash-is-pouring-into-this-bargain-value-stock/ The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos