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

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BP (BP - Free Report) closed at $35.36 in the latest trading session, marking a +2.76% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.19%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 0.1%.

The oil and gas company's shares have seen a decrease of 2.38% over the last month, not keeping up with the Oils-Energy sector's gain of 0.24% and the S&P 500's gain of 2.26%.

Analysts and investors alike will be keeping a close eye on the performance of BP in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.58, reflecting a 31.82% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $60.29 billion, reflecting a 25.38% rise from the equivalent quarter last year.

BP's full-year Zacks Consensus Estimates are calling for earnings of $2.89 per share and revenue of $205.1 billion. These results would represent year-over-year changes of -11.35% and 0%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for BP. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.77% lower. At present, BP boasts a Zacks Rank of #3 (Hold).

In the context of valuation, BP is at present trading with a Forward P/E ratio of 13.18. This expresses a premium compared to the average Forward P/E of 11.34 of its industry.

Meanwhile, BP's PEG ratio is currently 1.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 2.04.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 235, which puts it in the bottom 5% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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