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BP (BP) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
Fair Isaac (FICO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

BP (BP) closed at $41.61 in the latest trading session, marking a +1.39% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.61%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.53%.

Heading into today, shares of the oil and gas company had lost 2.93% over the past month, outpacing the Oils-Energy sector's loss of 5.35% and the S&P 500's loss of 3.77% in that time.

Investors will be hoping for strength from BP as it approaches its next earnings release. On that day, BP is projected to report earnings of $0.86 per share, which would represent year-over-year growth of 1.18%. Our most recent consensus estimate is calling for quarterly revenue of $81.13 billion, up 5.5% from the year-ago period.

BP's full-year Zacks Consensus Estimates are calling for earnings of $3.41 per share and revenue of $311.73 billion. These results would represent year-over-year changes of -10.26% and +2.63%, respectively.

It is also important to note the recent changes to analyst estimates for BP. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.8% lower within the past month. BP is currently a Zacks Rank #3 (Hold).

In terms of valuation, BP is currently trading at a Forward P/E ratio of 12.02. Its industry sports an average Forward P/E of 11.11, so we one might conclude that BP is trading at a premium comparatively.

Meanwhile, BP's PEG ratio is currently 1.7. 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. BP's industry had an average PEG ratio of 1.7 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 70, which puts it in the top 28% 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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