BP (BP) Gains But Lags Market: What You Should Know
In the latest trading session, BP (BP) closed at $41.23, marking a +0.4% move from the previous day. This move lagged the S&P 500's daily gain of 0.41%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 0.57%.
Prior to today's trading, shares of the oil and gas company had lost 1.7% over the past month. This has was narrower than the Oils-Energy sector's loss of 3.41% and lagged the S&P 500's gain of 0.1% 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 $0.86, up 1.18% 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 $3.41 per share and revenue of $311.73 billion. These results would represent year-over-year changes of -10.26% and +2.63%, respectively.
Any recent changes to analyst estimates for BP should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.63% higher. BP is currently a Zacks Rank #3 (Hold).
In terms of valuation, BP is currently trading at a Forward P/E ratio of 12.03. For comparison, its industry has an average Forward P/E of 11.61, which means BP is trading at a premium to the group.
We can also see that BP currently has a PEG ratio of 1.7. 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. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 1.7 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 159, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.