I think BP shares look like a FTSE 100 bargain after recent falls

first_img Image source: Getty Images. Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I think BP shares look like a FTSE 100 bargain after recent falls Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. “This Stock Could Be Like Buying Amazon in 1997” Rupert Hargreaves | Saturday, 18th April, 2020 | More on: BP Oil companies have experienced a challenging period in recent weeks. BP (LSE: BP) shares haven’t escaped the carnage.The coronavirus crisis has caused demand for oil and gas products to slump. On top of this, OPEC’s decision to increase output a few weeks ago sent the price of oil plunging. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…OPEC has since decided to go back on its production increases. It has also gone further by cutting production. But this hasn’t had a significant impact on the oil price yet. And there’s currently little sign that the oil sector will return to normal in the near term. BP shares: taking action BP is taking steps to minimise the impact on its operations. It has cut capital spending by 25% this year to conserve cash. The energy group is now planning to spend $12bn this year, down from initial expectations for $15bn. On top of this commitment, the oil major is planning to raise $15bn by the middle of 2021 via asset sales. Management is targeting $10bn in proceeds by the end of this year. Selling non-core assets should help improve the company’s financial position as well as improve its profit margins. These efforts should help it navigate through the current economic uncertainty. BP is also committed to its dividend. Its shares currently support a dividend yield of 9.7%. This makes the company one of the few stocks in the FTSE 100 that has not cut its payout recently. Undervalued The outlook for BP shares is uncertain in the short run. However, the group has a strong balance sheet and a substantial amount of cash. Asset sales and efforts to reduce spending should help bolster the company’s financial position. This should help BP survive the unprecedented challenge facing the oil and gas sector today. The company could also use this uncertainty to reinforce its position in the industry.If small peers end up running out of cash, the firm could snap up their assets at discounted prices. That would be good news for BP shares in the long run, even if there’s more pain for the company in the near term. BP shares have recovered from their two-decade low of 223p, printed in the middle of March. Nonetheless, the stock remains cheap by historical standards. Its dividend yield of 9.7% is one of the highest on record, surpassing the level reached in the depths of the financial crisis. Although the stock could move lower in the short term, depending on the prospects for the oil and gas industry, it appears to offer excellent value for money at current levels from a long-term perspective. On top of the capital gains potential of BP shares, in the long run, investors can also look forward to that market-beating dividend yield of 9.7%. center_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Rupert Hargreaves 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. 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