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

Zacks Equity Research

BP (BP) closed the most recent trading day at $43.82, moving +0.67% from the previous trading session. This move lagged the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq gained 0.71%.

Coming into today, shares of the oil and gas company had gained 2.4% in the past month. In that same time, the Oils-Energy sector lost 0.52%, while the S&P 500 gained 0.28%.

Wall Street will be looking for positivity from BP as it approaches its next earnings report date. In that report, analysts expect BP to post earnings of $0.67 per share. This would mark a year-over-year decline of 14.1%. Meanwhile, our latest consensus estimate is calling for revenue of $53.02 billion, down 23.33% from the prior-year quarter.

BP's full-year Zacks Consensus Estimates are calling for earnings of $3.19 per share and revenue of $253.65 billion. These results would represent year-over-year changes of -16.05% and -16.49%, respectively.

Investors should also note any recent changes to analyst estimates for BP. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection has moved 1.54% lower. BP is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, BP currently has a Forward P/E ratio of 13.65. This represents a premium compared to its industry's average Forward P/E of 11.59.

It is also worth noting that BP currently has a PEG ratio of 1.93. 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. The Oil and Gas - Integrated - International was holding an average PEG ratio of 1.29 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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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