BP (BP) closed at $38.81 in the latest trading session, marking a +0.57% move from the prior day. The stock outpaced the S&P 500's daily loss of 2.48%. At the same time, the Dow lost 2.83%, and the tech-heavy Nasdaq lost 3.04%.
Coming into today, shares of the oil and gas company had lost 5.76% in the past month. In that same time, the Oils-Energy sector lost 8.19%, while the S&P 500 lost 8.82%.
Investors will be hoping for strength from BP as it approaches its next earnings release, which is expected to be February 5, 2019. The company is expected to report EPS of $0.78, up 21.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $61.52 billion, down 12.15% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for BP. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 8.57% lower within the past month. BP is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that BP has a Forward P/E ratio of 10.89 right now. Its industry sports an average Forward P/E of 9.6, so we one might conclude that BP is trading at a premium comparatively.
We can also see that BP currently has a PEG ratio of 1.06. 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. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 1.06 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 248, which puts it in the bottom 3% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.