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BP (BP) Dips More Than Broader Markets: What You Should Know

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BP (BP - Free Report) closed the most recent trading day at $27.07, moving -0.26% from the previous trading session. This move lagged the S&P 500's daily loss of 0.1%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Coming into today, shares of the oil and gas company had gained 3.67% in the past month. In that same time, the Oils-Energy sector gained 2.89%, while the S&P 500 gained 4.4%.

Wall Street will be looking for positivity from BP as it approaches its next earnings report date. The company is expected to report EPS of $1.19, up 3866.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $41.77 billion, down 14.01% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.79 per share and revenue of $153.72 billion, which would represent changes of +324.26% and -16.23%, respectively, from the prior year.

Any recent changes to analyst estimates for BP should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.75% higher. BP currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, BP is holding a Forward P/E ratio of 7.15. This valuation marks a discount compared to its industry's average Forward P/E of 8.

We can also see that BP currently has a PEG ratio of 0.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 0.71 based on yesterday's closing prices.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow BP in the coming trading sessions, be sure to utilize Zacks.com.


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