Should I Buy BP Stock in 2026?

Data-driven analysis and honest assessment for BP PLC ADR

Analysis Updated:
CAUTIONSeveral concerns warrant careful consideration

Current Price: $35.15P/E: 56.7

Decision Score

5.0/10

Hold

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)2/10

Very high P/E of 56.7 suggests overvaluation

Growth (20%)5/10

Slow growth of 3%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)10/10

Excellent FCF yield of 22.2%

Insider Activity (10%)5/10

No recent insider activity

Key Investment Metrics

Current Price

$35.15

P/E Ratio

56.69

Revenue Growth

0.0%

Profit Margin

0.0%

Market Cap

$90.3B

Dividend Yield

0.06%

How BP Compares to Competitors

Understanding how BP stacks up against peers helps inform your investment decision.

How BP Compares to Peers

Upcoming Events for BP

+5 Reasons TO Buy BP

1. High free cash flow yield of 22.2%

strong

FCF yield above 5% means substantial cash generation for dividends, buybacks, or reinvestment.

-5 Reasons NOT to Buy BP

1. Thin profit margins of 0.0%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

2. Expensive valuation at 57x earnings

medium risk

P/E of 57 is significantly above averages. High expectations leave little room for disappointment.

3. Low gross margins of 26%

medium risk

Margins below 30% indicate commodity-like pricing and input cost vulnerability.

4. Minimal revenue growth

low risk

Growth of 0.0% barely keeps pace with inflation.

Who Should Buy BP?

Investment Profile

Risk Level

High

Recommended Holding Period

3-5 years

Best For:

  • Momentum Traders

    High-growth profile attracts momentum

Not Suitable For:

  • Growth Investors

    Limited 0% growth may disappoint

  • Value Investors

    Premium P/E of 57 doesn't fit value criteria

  • Income-Focused Retirees

    Low 0.1% yield

  • Risk-Averse Investors

    High risk may cause uncomfortable volatility

Consider These Alternatives

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Pro tip: Compare BP directly with competitors using our comparison tool to see which stock better fits your criteria.

Get the Full Picture

Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for BP

Frequently Asked Questions

What is BP stock price today?

BP (BP PLC ADR) stock is trading at $35.15 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

Is BP stock going up or down today?

BP stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

Should I buy BP stock now?

The decision to buy BP depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

Is BP a buy, hold, or sell right now?

Our AI-powered analysis provides buy/hold/sell recommendations for BP based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

Is BP stock overvalued or undervalued?

BP currently trades at a P/E ratio of 56.69, which may indicate premium valuation. Our DCF calculator provides intrinsic value estimates to help determine if BP is fairly priced.

What is BP's P/E ratio?

BP has a price-to-earnings (P/E) ratio of 56.69, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

What is BP's market cap?

BP (BP PLC ADR) has a market capitalization of $90.28 billion, making it a mid-cap stock.

What is BP's price to book ratio?

BP trades at a price-to-book (P/B) ratio of 1.56, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

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Disclaimer

This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.