Rumors about the acquisition of BP are sinking to a new broth News ad

There are several unusual ways of time Financial marketsNevertheless, when these signs appear, investors can get an unfair advantage over most other participants, if they know what to look for and how to read them. The last sign of potential possibility proceeds from the energy sector, especially in acquisitionsThe field is a short explanation for those who are not familiar with what this can mean.

When companies become The purpose of acquisitionDespite the fact that they can already be a big and established name in the industry, it can be confidently assumed that the entire industry (not only the purpose of acquisition) can be cheap enough so that others can be considered as a potential play. Now the opportunity comes out directly from B. NYSE: BPan Company $ 80.8 billion It was a formidable operator in oil and gas industry For decades.

The numbers have swam for the acquisition of BP recently, and the applications will probably come from the names as Exxon Mobil Co. NYSE: XomIN Chevron Co. NYSE: CVXAnd even Shell NYSE: walkedOf course, there is some great potential that should be in Acquisition of BPhow soon investors see, but another worthy mention is also being considered The main growth potential come immediately after.

Why consider the acquisition today?

Looking at the current price action in SPDR Section SecTOR SECT Foundation NYSEARCA: XleInvestors can notice how a wider industry has reduced S&P 500 index As much as 20% over the past 12 monthsField

Given this discrepancy as a result of effectiveness, investors may begin to assume that the potential overtake Maybe in place.

But this is not just a phenomenon for a wider industryThe field when viewing on Assessment multiple In the names considering the bet on BP, the story looks very similar.

Price to the book (p/b)In particular, they also decreased over the past 12 months, as a result of which these industry giants fell by Cyclically cheap levels Today.

Therefore, it makes sense that the industry is striving consolidate Further, now that estimates (along with oil prices) are in cyclic minimums. What does this mean for investors is a handful, especially when they consider the price considered for the entire BP business.

To 160 billion dollars was dissolved as the price For BP, which double the market capitalizationField if the rule approves and accepts this acquisitionThe shareholders will have The potential is 100% growthField

However, there is another corner, investors can accept in this chess game.

Of all these participants, Exxon Mobil Probably win. The company’s financial indicators show the strongest balance in the group, and since it is in the European language, it should not cross as many regulatory obstacles as Shell.

This potential result can explain why Assistants from Charles Schwab and Goldman Saks I decided to increase my assets in Exxon Mobil Stock As much as 1.6% and 3.7%respectively.

In May 2025, since positions are overlapped within a few billion dollars, the conviction of who can win this war at the BP bet.

If oil is cheap, drilling is theft

For those who are not interested in joining the war for trading and life with uncertainty, whether the BP will ultimately realize this 100% growth potential, or the markets will respond positively or negatively for the Exxon results in this acquisition, another space in the industry acts as a decent mention more guaranteed additional growthField

Knowing that Oil space, as a rule, cheap todayTherefore, investors may assume that readiness for acquisition and low multiple grades may assume that Lower cycle close. At the same time, when Trade tariff transactions land with the United States and its trading partners, and Economic prospects It becomes clearer Oil demand will definitely followField

And who will be the first to pay for higher oil prices? Not producers, but those who allow production in the first place. That’s where Manufacturers of drilleys and drilling equipment Come to the game. Of them, Transocean Ltd. NYSE: RIG He takes the initiative in terms of the fact that he can offer investors.

After a fall as much as 54.5% over the past 12 monthsTRANSOCEAN shares, possibly, have a price in the worst scenarios for the company and the industry as a whole, leaving investors only the potential when they conclude in trading transactions.

This topic can be crystallized by looking at how 9.9% The short percentage of Transocean has decreased only in the last month, which is a clear sign Bear Capitulation As a scale of risk to reward in favor of bulls.

Moreover, analysts in BTIG Research decided Repeat the purchase rating On Transocean shares, after a recent profit and loss report with a target price of $ 5 per share.

Before considering BP, you will want to hear it.

Marketbeat monitors the highest and most effective analysts with the most effective Wall Street analysts and promotions that they recommend to their customers daily. Marketbeat has identified five shares that leading analysts quietly whisper to their customers to buy now before a wider market is conquered … and BP was not on the list.

While BP currently has a retention rating among analysts, analysts with the highest rating believe that these five promotions are better buying.

View five shares here

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