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

Zacks Equity Research

BP (BP) closed at $39.35 in the latest trading session, marking a +0.31% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.71%.

Prior to today's trading, shares of the oil and gas company had lost 6.17% over the past month. This has lagged the Oils-Energy sector's gain of 0.37% and the S&P 500's gain of 1.93% in that time.

Investors will be hoping for strength from BP as it approaches its next earnings release. The company is expected to report EPS of $0.79, down 7.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $79.79 billion, up 3.74% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.16 per share and revenue of $300.69 billion. These totals would mark changes of -16.84% and -1%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for BP. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate has moved 3.19% lower within the past month. BP is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, BP is currently trading at a Forward P/E ratio of 12.4. For comparison, its industry has an average Forward P/E of 12.31, which means BP is trading at a premium to the group.

We can also see that BP currently has a PEG ratio of 1.75. 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 1.88 based on yesterday's closing prices.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 20% 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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