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

Zacks Equity Research

BP (BP) closed at $37.03 in the latest trading session, marking a -0.38% move from the prior day. This change lagged the S&P 500's 0.31% gain on the day. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 0.26%.

Prior to today's trading, shares of the oil and gas company had lost 1.51% over the past month. This has was narrower than the Oils-Energy sector's loss of 5.93% and lagged the S&P 500's gain of 1.18% in that time.

Wall Street will be looking for positivity from BP as it approaches its next earnings report date. This is expected to be February 4, 2020. The company is expected to report EPS of $0.65, down 37.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $80.17 billion, up 4.28% from the year-ago period.

Any recent changes to analyst estimates for BP should also be noted by investors. 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.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 10.15% higher. BP currently has a Zacks Rank of #3 (Hold).

In terms of valuation, BP is currently trading at a Forward P/E ratio of 11.37. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 11.37.

Meanwhile, BP's PEG ratio is currently 1.2. 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. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 1.84 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 186, putting it in the bottom 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.

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


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