Will BP stock stay close to its current price?

I believe the stock will stay close to these levels unless something changes. For example, either oil has to move up — increasing its cash flow — or the company has to raise its dividend. Unless one or both of these things happens, BP will likely stay within 7% to 15% of its present price. What does that mean for your position in the stock?

Why is BP stock trading at half its former valuation?

Right now, BP stock trades at half its former valuation. Oil prices are a big factor. In January, they were above US$60 per barrel. Today, they’re below US$40 per barrel. Fossil fuel producers are hurting right now, and according to a new report, the pain won’t go away anytime soon.

How much is BP stock worth?

At the beginning of October, I wrote that BP (NYSE: BP) was worth about $21 or so, based on its historical yield and the company’s cash flow. Now, however, BP stock has touched $22 in the past two months. I believe the stock will stay close to these levels unless something changes.