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BP (BP) Stock Sinks As Market Gains: Here's Why

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BP (BP - Free Report) closed at $34.11 in the latest trading session, marking a -1.27% move from the prior day. This change lagged the S&P 500's daily gain of 1.77%. Elsewhere, the Dow saw an upswing of 1.42%, while the tech-heavy Nasdaq appreciated by 2.28%.

Coming into today, shares of the oil and gas company had gained 1.95% in the past month. In that same time, the Oils-Energy sector gained 0.43%, while the S&P 500 lost 5.73%.

The investment community will be closely monitoring the performance of BP in its forthcoming earnings report. The company's upcoming EPS is projected at $0.64, signifying a 34.02% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $57.08 billion, showing a 14.25% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.21 per share and revenue of $241.39 billion, which would represent changes of -1.53% and +24.02%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for BP. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

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 9.11% lower within the past month. BP presently features a Zacks Rank of #3 (Hold).

In terms of valuation, BP is presently being traded at a Forward P/E ratio of 10.78. This denotes a premium relative to the industry's average Forward P/E of 7.99.

We can additionally observe that BP currently boasts a PEG ratio of 1.22. 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. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 39% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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