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BP (BP) Gains As Market Dips: What You Should Know

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In the latest trading session, BP (BP - Free Report) closed at $26.03, marking a +1.76% move from the previous day. This change outpaced the S&P 500's 1.34% loss on the day. Elsewhere, the Dow lost 1.11%, while the tech-heavy Nasdaq lost 2.11%.

Heading into today, shares of the oil and gas company had gained 20.26% over the past month, outpacing the Oils-Energy sector's gain of 9.56% and the S&P 500's loss of 0.11% in that time.

Wall Street will be looking for positivity from BP as it approaches its next earnings report date. On that day, BP is projected to report earnings of $0.35 per share, which would represent year-over-year growth of 45.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.05 billion, down 51.2% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.90 per share and revenue of $214.9 billion, which would represent changes of +212.43% and +17.11%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for BP. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.6% lower. BP currently has a Zacks Rank of #3 (Hold).

In terms of valuation, BP is currently trading at a Forward P/E ratio of 13.47. For comparison, its industry has an average Forward P/E of 15.22, which means BP is trading at a discount to the group.

We can also see that BP currently has a PEG ratio of 3.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 3.18 based on yesterday's closing prices.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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