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BP (BP) Stock Declines While Market Improves: Some Information for Investors

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BP (BP - Free Report) closed at $31.69 in the latest trading session, marking a -0.28% move from the prior day. This change lagged the S&P 500's 1% gain on the day. Elsewhere, the Dow saw an upswing of 0.78%, while the tech-heavy Nasdaq appreciated by 1.51%.

The oil and gas company's stock has climbed by 11.86% in the past month, exceeding the Oils-Energy sector's loss of 3.79% and the S&P 500's loss of 2.14%.

The upcoming earnings release of BP will be of great interest to investors. The company's upcoming EPS is projected at $0.61, signifying a 42.99% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $57.53 billion, up 9.4% from the prior-year quarter.

Investors should also pay attention to any latest changes in analyst estimates for BP. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.89% decrease. Right now, BP possesses a Zacks Rank of #3 (Hold).

In the context of valuation, BP is at present trading with a Forward P/E ratio of 9. This represents a premium compared to its industry's average Forward P/E of 8.97.

We can also see that BP currently has a PEG ratio of 2.25. 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 1.8 based on yesterday's closing prices.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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