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

Zacks Equity Research
Tencent Holding (TCEHY) closed the most recent trading day at $42.90, moving +0.63% from the previous trading session.

BP (BP) closed the most recent trading day at $40.35, moving +0.8% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.48%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.8%.

Coming into today, shares of the oil and gas company had gained 2.43% in the past month. In that same time, the Oils-Energy sector lost 1.26%, while the S&P 500 lost 2.09%.

Wall Street will be looking for positivity from BP as it approaches its next earnings report date. This is expected to be February 5, 2019. On that day, BP is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 21.88%. Our most recent consensus estimate is calling for quarterly revenue of $61.52 billion, down 12.15% from the year-ago period.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 4.92% lower. BP currently has a Zacks Rank of #3 (Hold).

Investors should also note BP's current valuation metrics, including its Forward P/E ratio of 11.06. This represents a premium compared to its industry's average Forward P/E of 9.89.

It is also worth noting that BP currently has a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BP's industry had an average PEG ratio of 1.07 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 248, putting it in the bottom 4% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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