10 Blue-Chip Stocks to Buy at 52-Week Lows

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

52 Week Range: $30.52 – $40.84

Current Share Price: $31.42

Number of Hedge Fund Holders: 38

Market Capitalization as of September 30: $83.75 Billion 

BP p.l.c. (NYSE:BP) is an integrated oil and gas company that produces and distributes oil and gas. It is one of the oil and gas heavyweights trading close to 52-week lows in the aftermath of oil prices falling under pressure and dropping to $70 a barrel.

Investors carefully monitor the energy behemoth as it negotiates a challenging environment that includes shifting oil prices, regulatory constraints, and the global shift to renewable energy sources. The 52-week low represents a pivotal point for BP p.l.c. (NYSE:BP), as investors evaluate the company’s tactical actions to steady and expand during the industry’s revolutionary phase.

The company has already inked a strategic partnership with Palantir Technologies that will allow it to leverage artificial intelligence technology. The push is part of the company’s bid to enhance its exploration and production ability using revolutionary technology.

BP p.l.c. (NYSE:BP) also plans to increase its footprint in India as it looks into more business opportunities in the quickly developing market. The company has confirmed strategic interest in the nation’s oil and gas industry to boost its stagnant oil and gas production. India is the third-largest oil importer and consumer in the world. It has also announced plans to sell off underperforming assets, starting with wind-generating holdings in the U.S. valued at about $2 billion.

Additionally, BP p.l.c. (NYSE:BP) delivered impressive second-quarter results with a free cash flow of $8.1 billion, which allowed it to reduce its net debt by $1.4 billion. The net profit in the quarter was $2.8 billion, which was above analysts’ expectations of $2.6 billion. The better-than-expected results resulted in the company increasing its dividend by 10% to $8 cents a share.

While the stock has underperformed, dropping close to its 52-week lows, it remains one of the best blue-chip stocks to buy at 52-week lows, going by its 6.11% dividend yield.

According to Insider Monkey’s database for the second quarter of 2024, 38 hedge funds held stakes in BP p.l.c. (NYSE:BP), a slight decrease from the 40 hedge funds that held stakes in the previous quarter. Despite this minor drop, the total value of these stakes remains substantial, exceeding $1.48 billion. This indicates that while a few hedge funds may have adjusted their positions, many institutional investors continue to see value in BP p.l.c. (NYSE:BP)’s stock.