Back to top

Image: Bigstock

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

Read MoreHide Full Article

BP (BP - Free Report) closed at $38.75 in the latest trading session, marking a +0.81% move from the prior day. This change outpaced the S&P 500's 0.4% gain on the day. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 0.45%.

Prior to today's trading, shares of the oil and gas company had gained 6.33% over the past month. This has outpaced the Oils-Energy sector's gain of 3.39% and the S&P 500's loss of 1.38% 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 $1.34 per share, which would represent a year-over-year decline of 48.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $65.58 billion, up 13.45% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.41 per share and revenue of $239.84 billion, which would represent changes of -38.1% and -3.64%, respectively, from the prior year.

Investors should also note any 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.59% lower within the past month. BP currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, BP currently has a Forward P/E ratio of 7.1. This valuation marks a premium compared to its industry's average Forward P/E of 6.69.

Investors should also note that BP has a PEG ratio of 1.09 right now. 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. BP's industry had an average PEG ratio of 0.86 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 198, putting it in the bottom 22% 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.

You can find more information on all of these metrics, and much more, on

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

BP p.l.c. (BP) - free report >>

Published in