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BP (BP) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, BP (BP) closed at $37.20, marking a -0.43% move from the previous day. This move lagged the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Heading into today, shares of the oil and gas company had lost 3.06% over the past month, lagging the Oils-Energy sector's loss of 2.33% and the S&P 500's loss of 0.25% in that time.

Investors will be hoping for strength from BP as it approaches its next earnings release, which is expected to be October 29, 2019. The company is expected to report EPS of $0.75, down 34.78% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $81.58 billion, up 0.96% from the year-ago period.

BP's full-year Zacks Consensus Estimates are calling for earnings of $3.06 per share and revenue of $293.85 billion. These results would represent year-over-year changes of -19.47% and -3.26%, respectively.

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

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.

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 remained stagnant. BP is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that BP has a Forward P/E ratio of 12.2 right now. This represents a discount compared to its industry's average Forward P/E of 12.21.

It is also worth noting that BP currently has a PEG ratio of 1.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 1.69 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 226, which puts it in the bottom 12% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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