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BP (BP) Advances While Market Declines: Some Information for Investors

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BP (BP - Free Report) closed the most recent trading day at $31.78, moving +1.53% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.21%. On the other hand, the Dow registered a loss of 0.16%, and the technology-centric Nasdaq decreased by 0.89%.

Coming into today, shares of the oil and gas company had gained 9.67% in the past month. In that same time, the Oils-Energy sector lost 6.25%, while the S&P 500 lost 1.56%.

Investors will be eagerly watching for the performance of BP in its upcoming earnings disclosure. On that day, BP is projected to report earnings of $0.66 per share, which would represent a year-over-year decline of 38.32%. Meanwhile, the latest consensus estimate predicts the revenue to be $57.53 billion, indicating a 9.4% increase compared to the same quarter of the previous year.

Any recent changes to analyst estimates for BP should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 6.82% lower. BP is currently a Zacks Rank #3 (Hold).

In the context of valuation, BP is at present trading with a Forward P/E ratio of 8.76. For comparison, its industry has an average Forward P/E of 8.98, which means BP is trading at a discount to the group.

Also, we should mention that BP has a PEG ratio of 2.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 1.8.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% of all 250+ industries.

The Zacks Industry Rank is ordered 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.


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