We recently published a list of 10 Best UK Stocks to Buy According to Billionaires. In this article, we are going to take a look at where BP p.l.c. (NYSE:BP) stands against other best UK stocks to invest in.
Like most of the world, the United Kingdom is also facing slower economic growth in 2025, fuelled by an unpredictable trading environment and high taxes. According to KPMG, there are some upsides to the UK economy this year, including solid household savings and robust public spending. However, American tariffs could limit UK GDP growth to only 0.8% during 2025 and 2026. In the short term, inflation will likely come back due to growing labor costs and skyrocketing energy prices. Nonetheless, KPMG forecasts that inflation will simmer down to the Bank of England’s target of 2% by the middle of next year.
What came as a surprise was the UK economy going up by 0.1% in Q4 2024, a welcome reprieve from the sodden economic outlook painted by market experts. This made Britain the top performer in Europe during the fourth quarter, as Italy remained flat and German and French economies shrunk. However, the UK economy fell short of the 0.6% growth in the United States. In light of these economic developments, Scott Gardner, investment strategist at JP Morgan-owned wealth manager Nutmeg, told Reuters on February 13, 2025:
“A pleasant surprise, but we’re not out of the woods yet. Beneath the surface of these latest figures, domestic demand via consumption and business investment was weaker than expected,”
As per Britain’s Office for National Statistics, wholesalers, film distributors, pubs and bars, industrial manufacturers, and pharma led the growth in December 2024. However, it should be noted that this growth was dependent on monetary support from the government and a brief pile-up in business inventories. In addition, flat spending trends were observed in households, and business investment stumbled by 3.2% in Q4. The Bank of England has now slashed its growth outlook for 2025 to 0.75%, while the National Institute of Economic and Social Research remains optimistic with a 1.5% forecast.
Investor optimism is increasing around the UK, given the rising trade tensions between the United States and Europe. While UK economic growth has lagged in recent years, BofA analysts expect it to pick up pace in 2025, projecting 1.4% growth. Analysts see positive signs like deregulation, capital spending, and potential US trade benefits. Sanjay Raja, chief UK economist at Deutsche Bank, told CNBC on March 24, 2025:
“Talk of a U.S. trade deal also surfaced in client conversations, and there was increased optimism that the U.K. may be spared from direct and widespread tariffs,”
It is interesting to note that no matter the macroeconomic conditions, the rich seem to be getting richer.
A large turbine generating power from natural gas, smoke rising in the background.
Our Methodology
To collect data for this article, we scanned Insider Monkey’s database of billionaires’ stock holdings and identified the companies headquartered in the UK but listed on American exchanges. From there, we picked the top 10 companies with the highest number of billionaire investors in Q4 2024. The stocks are ranked in ascending order based on the number of billionaire investors. We have also mentioned the value of billionaire holdings for further insight.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
BP p.l.c. (NYSE:BP)
Number of Billionaire Investors: 11
Value of Billionaire Holdings: $1.31 billion
Founded in 1908 and based in London, BP p.l.c. (NYSE:BP) is a multinational integrated energy company that provides natural gas, oil, and low-carbon energy, including wind, solar, hydrogen, and carbon capture. On February 27, Bernstein reiterated an Outperform rating on BP with a price target of £5.70. According to the investment firm, BP has adapted to new market conditions, lowering its spending and focusing more on high-return oil and gas projects. The company aims to expand production by 2030 and continue growing through 2035, with a focus on reaccumulating reserves.
On February 11, BP p.l.c. (NYSE:BP) declared a $0.48 per ADS quarterly dividend, which was paid on March 28 to shareholders of the company as of February 21. In 2024, the company reported a full-year operating cash flow of $27.3 billion. BP also raised its dividend per share by 10% and returned $7 billion in share repurchases. By the end of Q4 2024, BP’s net debt was $23 billion, down from $24.3 billion in Q3 but up from $20.9 billion in the prior-year quarter. This change was driven by $2.8 billion from asset sales, $2.6 billion in hybrid bonds, and $3 billion in debt from recent acquisitions.
A total of 11 billionaires were bullish on BP p.l.c. (NYSE:BP) in the fourth quarter of 2024, with total stakes worth $1.31 billion. Billionaire Ken Fisher’s Fisher Asset Management was the biggest position holder in the company, with 23.3 million shares valued at nearly $690 million.
Overall, BP ranks 5th among the 10 Best UK Stocks to Buy According to Billionaires. While we acknowledge the potential of UK stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
