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BP (BP) Ascends While Market Falls: Some Facts to Note

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The latest trading session saw BP (BP - Free Report) ending at $38.52, denoting a +1.58% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.88%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, lost 2.05%.

Shares of the oil and gas company witnessed a gain of 0.5% over the previous month, trailing the performance of the Oils-Energy sector with its gain of 2.78% and outperforming the S&P 500's loss of 2.57%.

Analysts and investors alike will be keeping a close eye on the performance of BP in its upcoming earnings disclosure. The company's earnings report is set to go public on May 7, 2024. The company is forecasted to report an EPS of $1.03, showcasing a 37.95% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $61.77 billion, up 8.47% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.89 per share and a revenue of $253.16 billion, signifying shifts of +2.3% and +18.84%, respectively, from the last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.36% increase. BP is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, BP is presently trading at a Forward P/E ratio of 7.75. This denotes a premium relative to the industry's average Forward P/E of 7.21.

It is also worth noting that BP currently has a PEG ratio of 1.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Integrated - International was holding an average PEG ratio of 1.94 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 39% of all 250+ industries.

The Zacks Industry Rank is ordered 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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