Here’s the growth forecast for BP shares for 2025!

City analysts expect BP shares to climb by double digits through to 2025! Does that make this energy giant a top buy for me in November?

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

2024 hasn’t been a fun year for BP (LSE:BP.) shares. The energy giant’s seen its valuation steadily slide by almost 20% since January, and the stock now trades at its lowest point over the last year.

That’s quite the change of pace compared to the upward trajectory shareholders enjoyed throughout 2021, 2022, and 2023.

Created with Highcharts 11.4.3Bp P.l.c. PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Seeing some pullback after a stellar run’s hardly anything new. The stock market’s always been like that, and a slowdown in oil & gas prices was expected given lower global economic activity. However, with shares trading at a price-to-earnings ratio of just 11.9, does this present an attractive buying opportunity for investors?

Should you invest £1,000 in Diageo right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Diageo made the list?

See the 6 stocks

Let’s take a look at what the BP growth forecasts have to say about what’s on the horizon.

BP’s revenue and profit predictions

Three quarters of results have been released by BP so far, and based on the latest figures, analysts have started publishing their expectations for the remainder of 2024, as well as 2025.

From a revenue standpoint, BP’s top line’s expected to reach anywhere between $183.3bn and $219.0bn.

Revenue20242025
Analysts1314
Highest$218.96bn$290.61bn
Lowest$183.33bn$154.53bn
Average Consensus$201.87bn$201.36bn

Obviously, that’s quite a bit of money. But compared to last year’s performance, the average consensus suggests BP’s sales are going to slip versus 2023’s $210.1bn. And it seems this downward trend’s expected to continue into 2025.

What about earnings? Things aren’t looking great for 2024. BP’s latest third-quarter results were the weakest in almost four years due to falling oil & gas prices. And consequently, earnings fell by almost a third. This disappointing performance is also reflected in the analyst forecasts.

Earnings per Share20242025
Analysts2020
Highest$0.76$0.86
Lowest$0.51$0.55
Average Consensus$0.63$0.69

It seems even the most optimistic earnings forecast for 2024’s still coming in lower than last year’s $0.79. So how does this all translate into Buy, Sell, or Hold opinions?

OpinionAnalysts
Buy5
Outperform5
Hold13
Sell1
Strong Sell0

Despite the lacklustre revenue and earnings projections, it seems analysts remain bullish on BP shares. In fact, based on the share price forecasts, it appears that the company’s currently undervalued, given that even the most pessimistic share price prediction indicates that growth lies ahead.

Opinion12-Month Share Price Forecast
Optimistic647.69p
Average483.27p
Pessimistic418.73p

Should I buy BP shares?

Looking at the analyst predictions, it seems an investment in BP shares right now appears to be a value play. While the business may not be set for tremendous growth in the medium term, the oversold shares may present an attractive entry point.

Having said that, forecasts always need to be taken with a pinch of salt. A lot of assumptions have been baked into these expectations, and there’s no guarantee that these figures will hold true. After all, forecasts are wrong most of the time, especially with commodity-driven businesses where countless external factors can throw a spanner in the works.

Personally, I’m not tempted to add BP shares to my portfolio right now. While I must admit the share price looks attractive, I’d rather own a business whose sales and earnings are in full growth mode rather than looking wobbly.

But what does the head of The Motley Fool’s investing team think?

Should you invest £1,000 in Diageo right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Diageo made the list?

See the 6 stocks

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Pound coins for sale — 51 pence?

This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

More on Investing Articles

Investing Articles

10% dividend yield! Here’s a FTSE 100 share to consider in April for passive income

This FTSE 100 stock just soared past the 10% yield mark, making it a potentially lucrative option for investors targeting…

Read more »

Young black woman using a mobile phone in a transport facility
Investing Articles

3 FTSE 100 safe haven stocks to consider as trade wars bite

I'm confident in the long-term outlook for the FTSE index of stocks. But these blue chips may protect investors from…

Read more »

Investing Articles

Here’s how Trump tariffs could hand us some top passive income bargains

As tariff terror grips the stock market, it's time for passive income investors to steel our nerves and look for…

Read more »

Investing Articles

These FTSE shares may offer some safety as Trump slaps tariffs on trading partners

FTSE shares moved lower on 3 April, after US President Donald Trump introduced hefty tariffs on its trading partners. These…

Read more »

Investing Articles

6.8% dividend yield! Consider these 2 ‘secret’ passive income stocks to target a £1,360 payday in 2025

Looking for ways to generate above-average dividend income? These lesser-bought income stocks are worth a close look.

Read more »

Elevated view over city of London skyline
Investing Articles

The M&G dividend yields over 10% — and could get higher!

Christopher Ruane explains why he's upbeat about the long-term outlook for the M&G dividend yield and would happily buy the…

Read more »

Young Caucasian man making doubtful face at camera
Investing Articles

2 popular UK growth stocks I wouldn’t touch with a bargepole in today’s market

Buying growth stocks can deliver market-beating returns, but this FTSE 250 pair doesn't look like a convincing investment for our…

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing Articles

10 FTSE shares falling today after President Trump’s tariffs bombshell!

Our writer explains why JD Sports Fashion from the FTSE 100 and a diverse bunch of other UK stocks are…

Read more »