10 Best Falling Stocks To Buy According to Hedge Funds

7. BP p.l.c. (NYSE:BP)

52 Week Range: $30.52 – $40.40

Current Share Price: $31.26

Number of Hedge Fund Holders: 38 

BP p.l.c. (NYSE:BP) is a major energy company based in the United Kingdom. It is involved in various operations related to the oil and gas industry. The company engages in the production of natural gas and other low-carbon initiatives such as solar, wind, and hydrogen production. It also extracts crude oil from more than 60 places around the globe.

Management aims to transition the company from an International Oil Company (IOC) to an International Energy Company (IEC). To accomplish this it is focused on six key strategic priorities including reduced emissions, efficiency, and Return on Average Capital Employed. Its focus on reducing emissions resulted in a 40% reduction in scope 1 and scope 2 emissions as per its February report.

During the second quarter of fiscal 2024, BP p.l.c. (NYSE:BP) reported Group Underlying Replacement Profit of $2.8 billion which was up slightly subsequently. Moreover, the company also reported a significant quarter-over-quarter increase of $3.1 billion in operating cash flow to reach $8.1 billion during the quarter. Management also announced a 10% increase in dividends and indicated significant share buyback in the upcoming quarters.

Another important highlight for the company came in as it reduced its net debt by $1.4 billion to bring its debt down to $22.6 billion. Moving forward, BP p.l.c. (NYSE:BP) is currently experiencing positive developments in its renewable energy initiatives, particularly related to D3 Renewable Identification Numbers (RINs). D3 RIN has shown robust performance, with average pricing in the second quarter reaching $3.19 per RIN, indicating significant demand for renewable natural gas used in transportation. As a result, its Arkea offering, which focuses on Renewable Natural Gas (RNG), has also witnessed an increase in demand for sustainable fuels.

The stock ranks as the 7th best-falling stock to buy according to hedge funds. It is currently trading close to its 52-week low however, 38 hedge funds had stakes in the company during the second quarter of 2024, as per Insider Monkey’s database.