BP PLC Share Price Forecast September 2021 – Time to Buy BP Stock?
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As a pro trader, it is important to catch an opportunity when it is going upwards as BP shares have been in the past few days. The share prices of the London-based oil and gas company climbed 3% and closed yesterday at £309.2. The British energy giant is gaining volumes and progressing at an encouraging rate. Let us try to determine why BP shares are in the buy zone at the moment in the following section.
BP Plc – Technical Analysis
BP Plc is known globally as one of the major energy business entities which started back in 1908. Not only does BP produce and trade natural gas, biofuel but it also operates wind and solar power generating facilities. The total market capitalisation of BP is close to £59.9 billion with a consistent dividend yield of 5.26% and a P.E. ratio of 9.70.
The technical analysis reveals that BP shares are currently in the strong buy zone which is a great opportunity to make an entry. BP is also being favoured by 17 different and most-used technical indicators including both moving averages and oscillators. Some of these indicators are RSI (59.58), MACD (0.48), EMA (300.36), and SMA (299.35). If the present situation continues then these shares would remain in the buy zone for the rest of the week.
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Recent Developments
To understand the continuous growth in BP shares, we must determine the factors which are favouring it at the moment. One of these factors is the significant improvement in crude oil prices that has influenced both BP and its competitors in the market. The price of West Texas Intermediate has recently climbed up to 50.5 per barrel, leaving behind the negative territory hit in April due to COVID-19. This recovery which is helping BP’s upstream operations can be associated with the rapid coronavirus vaccines rollout.
A week ago, BP Plc shared news about conducting a feasibility study in collaboration with Aussie lender Macquarie Group to assess and produce green hydrogen at the BP’s refinery site located in Western Australia. The goal of this joint study would be to help decarbonise the Kwinana industrial area. BP recently appointed Anja-Isabel Dotzenrath to supervise their expansion into renewable energy.
As mentioned earlier, BP deals in refining business as well which is spread out in the United States region. As the economy reopens and there is a rise in fuel demand, BP is expected to capitalise because all of its operational refineries are connected with a sophisticated logistics infrastructure. The solid market position occupied by BP makes it a decent pick for the current season among all of its peers.
Should You Buy BP Shares?
BP shares could be one of the most intriguing choices for active investors at the moment because the worldwide influential company has recorded a solid earnings estimate revision activity. BP’s yearly sales figure indicates a healthy growth rate from 2018 to 2020. This year the oil and gas conglomerate has recorded a 293% of earnings growth which is more than enough to put BP shares on the list of market gainers.
Over a month ago, BP Plc’s current quarter estimates have grown considerably when the company shares are compared to other segments available out there. BP is going great so far as a profitable investment opportunity for traders more interested in the oil and gas sector.
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