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Why the Market Dipped But BP (BP) Gained Today

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The latest trading session saw BP (BP - Free Report) ending at $34.22, denoting a +1.36% adjustment from its last day's close. This change outpaced the S&P 500's 1.07% loss on the day. On the other hand, the Dow registered a loss of 0.62%, and the technology-centric Nasdaq decreased by 1.71%.

The oil and gas company's shares have seen a decrease of 3.54% over the last month, not keeping up with the Oils-Energy sector's loss of 1.46% and outstripping the S&P 500's loss of 7.03%.

Market participants will be closely following the financial results of BP in its upcoming release. The company is expected to report EPS of $0.60, down 38.14% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $57.08 billion, indicating a 14.25% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.27 per share and a revenue of $241.39 billion, indicating changes of +0.31% and +24.02%, respectively, from the former year.

Investors should also note any 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.42% lower. BP currently has a Zacks Rank of #3 (Hold).

Digging into valuation, BP currently has a Forward P/E ratio of 10.34. This indicates a premium in contrast to its industry's Forward P/E of 8.15.

We can also see that BP currently has a PEG ratio of 1.17. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Oil and Gas - Integrated - International industry was having an average PEG ratio of 1.08.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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