BP (BP) Gains But Lags Market: What You Should Know
BP (BP) closed at $41.09 in the latest trading session, marking a +0.02% move from the prior day. This change lagged the S&P 500's 0.3% gain on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.42%.
Heading into today, shares of the oil and gas company had lost 3.91% over the past month, lagging the Oils-Energy sector's loss of 1.46% and the S&P 500's gain of 2.2% in that time.
BP will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.83, down 2.35% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $81.13 billion, up 5.5% from the year-ago period.
BP's full-year Zacks Consensus Estimates are calling for earnings of $3.27 per share and revenue of $311.73 billion. These results would represent year-over-year changes of -13.95% and +2.63%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.7% lower within the past month. BP is currently a Zacks Rank #3 (Hold).
In terms of valuation, BP is currently trading at a Forward P/E ratio of 12.57. This represents a premium compared to its industry's average Forward P/E of 11.72.
Investors should also note that BP has a PEG ratio of 1.77 right now. 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. The Oil and Gas - Integrated - International was holding an average PEG ratio of 1.77 at yesterday's closing price.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 16% 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.
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