BP (BP) Stock Sinks As Market Gains: Here's Why
In the latest trading session, BP (BP) closed at $37.46, marking a -0.29% move from the previous day. This change lagged the S&P 500's daily gain of 0.86%. At the same time, the Dow added 1.22%, and the tech-heavy Nasdaq gained 0.51%.
The oil and gas company's stock has climbed by 6.07% in the past month, exceeding the Oils-Energy sector's gain of 5.4% and the S&P 500's gain of 2.84%.
The investment community will be closely monitoring the performance of BP in its forthcoming earnings report. In that report, analysts expect BP to post earnings of $1.13 per share. This would mark a year-over-year decline of 31.93%. Simultaneously, our latest consensus estimate expects the revenue to be $57.93 billion, showing a 1.72% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.96 per share and a revenue of $227.67 billion, demonstrating changes of +3.77% and +6.87%, respectively, from the preceding year.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.7% higher. BP currently has a Zacks Rank of #3 (Hold).
With respect to valuation, BP is currently being traded at a Forward P/E ratio of 7.57. This signifies a premium in comparison to the average Forward P/E of 7.37 for its industry.
It is also worth noting that BP currently has a PEG ratio of 1.89. 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. As the market closed yesterday, the Oil and Gas - Integrated - International industry was having an average PEG ratio of 1.96.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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BP p.l.c. (BP) : Free Stock Analysis Report
