Back to top

Image: Bigstock

BP (BP) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

The most recent trading session ended with BP (BP - Free Report) standing at $29.05, reflecting a +0.45% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 0.83%.

Coming into today, shares of the oil and gas company had gained 2.81% in the past month. In that same time, the Oils-Energy sector gained 2.48%, while the S&P 500 gained 5.17%.

The upcoming earnings release of BP will be of great interest to investors. The company is predicted to post an EPS of $0.62, indicating a 38% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $60.31 billion, showing a 24.99% escalation compared to the year-ago quarter.

BP's full-year Zacks Consensus Estimates are calling for earnings of $2.33 per share and revenue of $234.66 billion. These results would represent year-over-year changes of -28.53% and +20.57%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for BP. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 13.37% downward. Currently, BP is carrying a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that BP has a Forward P/E ratio of 12.4 right now. For comparison, its industry has an average Forward P/E of 10.15, which means BP is trading at a premium to the group.

It's also important to note that BP currently trades at a PEG ratio of 1.88. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 1.75 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 230, putting it in the bottom 7% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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