The latest trading session saw BP (BP – Free Report) ending at $33.81, denoting no adjustment from its last day’s close. The stock fell short of the S&P 500, which registered a gain of 0.67% for the day. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 0.87%.
The the stock of oil and gas company has risen by 7.54% in the past month, leading the Oils-Energy sector’s gain of 3.06% and the S&P 500’s loss of 5.28%.
Investors will be eagerly watching for the performance of BP in its upcoming earnings disclosure. The company is expected to report EPS of $0.68, down 29.9% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $57.08 billion, indicating a 14.25% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.22 per share and revenue of $241.39 billion, which would represent changes of -1.23% and +24.02%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for BP. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 5.36% downward. BP is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, BP is currently trading at a Forward P/E ratio of 10.52. This signifies a premium in comparison to the average Forward P/E of 8.47 for its industry.
It is also worth noting that BP currently has a PEG ratio of 1.19. 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 had an average PEG ratio of 1.39 as trading concluded yesterday.
The Oil and Gas – Integrated – International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 140, putting it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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