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BP (BP) Stock Sinks As Market Gains: What You Should Know

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BP (BP - Free Report) closed at $29.67 in the latest trading session, marking a -0.44% move from the prior day. This change lagged the S&P 500's 1.13% gain on the day. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 0.91%.

Heading into today, shares of the oil and gas company had lost 6.2% over the past month, lagging the Oils-Energy sector's gain of 8.56% and the S&P 500's gain of 2.65% in that time.

Wall Street will be looking for positivity from BP as it approaches its next earnings report date. In that report, analysts expect BP to post earnings of $1.15 per share. This would mark year-over-year growth of 49.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $51.59 billion, up 41.37% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.84 per share and revenue of $219.96 billion. These totals would mark changes of +26.7% and +33.96%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for BP. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 1.04% higher. BP is currently a Zacks Rank #3 (Hold).

In terms of valuation, BP is currently trading at a Forward P/E ratio of 6.15. This valuation marks a premium compared to its industry's average Forward P/E of 5.32.

It is also worth noting that BP currently has a PEG ratio of 2.18. 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. The Oil and Gas - Integrated - International was holding an average PEG ratio of 0.72 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 12% 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.

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


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