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BP (BP) Exceeds Market Returns: Some Facts to Consider
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BP (BP - Free Report) closed the latest trading day at $32.86, indicating a +0.67% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.28%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.15%.
The oil and gas company's stock has dropped by 4.31% in the past month, falling short of the Oils-Energy sector's gain of 0.29% and the S&P 500's gain of 2%.
The investment community will be paying close attention to the earnings performance of BP in its upcoming release. The company is forecasted to report an EPS of $0.88, showcasing a 23.48% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $66.32 billion, reflecting a 22.77% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.88 per share and revenue of $229.67 billion. These totals would mark changes of -18.83% and +7.81%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BP. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Within the past 30 days, our consensus EPS projection has moved 6.36% lower. BP currently has a Zacks Rank of #5 (Strong Sell).
With respect to valuation, BP is currently being traded at a Forward P/E ratio of 8.41. This represents a premium compared to its industry's average Forward P/E of 7.95.
Also, we should mention that BP has a PEG ratio of 4.21. 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. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 1.55.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 232, which puts it in the bottom 9% 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 Zacks.com.
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BP (BP) Exceeds Market Returns: Some Facts to Consider
BP (BP - Free Report) closed the latest trading day at $32.86, indicating a +0.67% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.28%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.15%.
The oil and gas company's stock has dropped by 4.31% in the past month, falling short of the Oils-Energy sector's gain of 0.29% and the S&P 500's gain of 2%.
The investment community will be paying close attention to the earnings performance of BP in its upcoming release. The company is forecasted to report an EPS of $0.88, showcasing a 23.48% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $66.32 billion, reflecting a 22.77% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.88 per share and revenue of $229.67 billion. These totals would mark changes of -18.83% and +7.81%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BP. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Within the past 30 days, our consensus EPS projection has moved 6.36% lower. BP currently has a Zacks Rank of #5 (Strong Sell).
With respect to valuation, BP is currently being traded at a Forward P/E ratio of 8.41. This represents a premium compared to its industry's average Forward P/E of 7.95.
Also, we should mention that BP has a PEG ratio of 4.21. 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. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 1.55.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 232, which puts it in the bottom 9% 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 Zacks.com.