7 Best Buy-the-Dip Stocks to Invest In

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

52 Week Range: $32.51 – $40.84

Current Share Price: $32.87

Number of Hedge Fund Holders: 38

Market Capitalization as of  September 4: $92.51 Billion 

BP p.l.c. (NYSE:BP) is one of the best buy-the-dip stocks to invest in to gain exposure in the energy sector at a time when oil and gas prices are showing signs of edging higher. The integrated oil company produces oil, natural gas, and integrated gas and power; trading of gas; and operation of onshore and offshore wind power.

BP p.l.c. (NYSE:BP) shares are trading near two-year lows, hurt by the company’s shift from the oil and gas business. Even as the company tries to move away from the fossil fuel business, a good chunk of its profits comes from the lucrative business.

It has since increased its forecast for oil and gas demand, indicating that its shift towards renewable energy is decelerating. It anticipates that the oil demand will reach around 97.8 million barrels per day in 2035, according to BP p.l.c. (NYSE:BP)’ s scenario, which reflects the ongoing path of the worldwide energy system. This figure is more than 5 percent higher than the previous year’s estimate, which saw BP reduce its expectations for expanding oil and gas demand.

Even though its profit margins face challenges, the energy company plans to keep returning funds to its investors. It has revealed a fresh $1.75 billion share repurchase program, which is bigger than the $1.5 billion it carried out in the previous quarter.

Additionally, BP p.l.c. (NYSE:BP) is dedicated to investing $3.5 billion in share repurchases for the first six months of this year. In total, the strategy is to invest at least $14 billion in share repurchases over the period of 2024-25.

Late last year, the company hiked its dividend by 10% to 7.27 cents as it continues to return optimum value to shareholders; its dividend yield currently stands at 5.63%. It is one of the best buy dips stocks to invest in as it trades at a discount with a price-to-earnings multiple of 6 compared to the energy sector average P/E of 13.

According to Insider Monkey’s database of Q2 2024, 38 hedge funds held stakes in BP p.l.c. (NYSE:BP), down from 40 in the previous quarter. These stakes have a total value of over $1.48 billion.