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BP (BP) Gains But Lags Market: What You Should Know

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BP (BP - Free Report) closed at $24.42 in the latest trading session, marking a +0.54% move from the prior day. This move lagged the S&P 500's daily gain of 6.24%. Elsewhere, the Dow gained 6.38%, while the tech-heavy Nasdaq added 5.6%.

Heading into today, shares of the oil and gas company had lost 25.67% over the past month, outpacing the Oils-Energy sector's loss of 35.98% and lagging the S&P 500's loss of 21.22% in that time.

Wall Street will be looking for positivity from BP as it approaches its next earnings report date. The company is expected to report EPS of $0.48, down 31.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $70.90 billion, up 5.19% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.27 per share and revenue of $220.89 billion. These totals would mark changes of -56.95% and -21.84%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for BP. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 57% lower. BP is currently a Zacks Rank #5 (Strong Sell).

Valuation is also important, so investors should note that BP has a Forward P/E ratio of 19.2 right now. For comparison, its industry has an average Forward P/E of 15.97, which means BP is trading at a premium to the group.

Investors should also note that BP has a PEG ratio of 12.8 right now. 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. BP's industry had an average PEG ratio of 4.11 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 246, which puts it in the bottom 4% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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