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BP (BP) Stock Sinks As Market Gains: What You Should Know

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Zacks Equity Research
·3 min read
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In the latest trading session, BP (BP) closed at $24.90, marking a -1.93% move from the previous day. This move lagged the S&P 500's daily gain of 1.45%. Elsewhere, the Dow gained 1.22%, while the tech-heavy Nasdaq added 0.78%.

Coming into today, shares of the oil and gas company had gained 2.96% in the past month. In that same time, the Oils-Energy sector lost 17.88%, while the S&P 500 lost 7.42%.

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 $0.39 per share, which would represent a year-over-year decline of 44.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $70.90 billion, up 5.19% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.57 per share and revenue of $220.89 billion, which would represent changes of -80.68% and -21.84%, respectively, from the prior year.

Investors might also notice 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.

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 76.99% lower within the past month. BP is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, BP is holding a Forward P/E ratio of 44.28. This represents a premium compared to its industry's average Forward P/E of 23.85.

It is also worth noting that BP currently has a PEG ratio of 29.52. 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. BP's industry had an average PEG ratio of 4.49 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 230, which puts it in the bottom 10% 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.

To follow BP in the coming trading sessions, be sure to utilize Zacks.com.


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