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BP (BP) Outpaces Stock Market Gains: What You Should Know

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BP (BP - Free Report) closed the most recent trading day at $25.65, moving +1.66% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.95%.

Prior to today's trading, shares of the oil and gas company had gained 2.35% over the past month. This has lagged the Oils-Energy sector's gain of 5.52% and outpaced the S&P 500's loss of 1.87% in that time.

BP will be looking to display strength as it nears its next earnings release. On that day, BP is projected to report earnings of $0.87 per share, which would represent year-over-year growth of 2800%. Our most recent consensus estimate is calling for quarterly revenue of $38.54 billion, down 12.82% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.27 per share and revenue of $153.01 billion, which would represent changes of +293.49% and -16.62%, respectively, from the prior year.

Any recent changes to analyst estimates for BP should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.41% higher. BP is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note BP's current valuation metrics, including its Forward P/E ratio of 7.72. For comparison, its industry has an average Forward P/E of 7.87, which means BP is trading at a discount to the group.

Meanwhile, BP's PEG ratio is currently 0.49. 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. BP's industry had an average PEG ratio of 0.57 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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