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

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In the latest trading session, BP (BP - Free Report) closed at $37.65, marking a +0.16% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.05%.

Coming into today, shares of the oil and gas company had lost 2.74% in the past month. In that same time, the Oils-Energy sector gained 1.63%, while the S&P 500 gained 2.48%.

BP will be looking to display strength as it nears its next earnings release. In that report, analysts expect BP to post earnings of $0.66 per share. This would mark a year-over-year decline of 36.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $76.29 billion, down 0.77% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.90 per share and revenue of $282.29 billion, which would represent changes of -23.68% and -7.06%, respectively, from the prior year.

Any recent changes to analyst estimates for BP should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.03% lower. BP is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, BP is currently trading at a Forward P/E ratio of 12.96. This represents a discount compared to its industry's average Forward P/E of 13.21.

It is also worth noting that BP currently has a PEG ratio of 1.36. 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. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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