BP (BP – Free Report) ended the recent trading session at $31.29, demonstrating a +0.55% swing from the preceding day’s closing price. The stock outpaced the S&P 500’s daily loss of 1.54%. On the other hand, the Dow registered a loss of 1.63%, and the technology-centric Nasdaq decreased by 1.63%.
Prior to today’s trading, shares of the oil and gas company had gained 3.22% over the past month. This has outpaced the Oils-Energy sector’s loss of 11.05% and the S&P 500’s loss of 2.2% in that time.
Analysts and investors alike will be keeping a close eye on the performance of BP in its upcoming earnings disclosure. The company is expected to report EPS of $0.65, down 39.25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $57.53 billion, up 9.4% from the prior-year quarter.
Investors should also take note of any recent adjustments to analyst estimates for BP. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 7.44% lower. At present, BP boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that BP has a Forward P/E ratio of 8.74 right now. For comparison, its industry has an average Forward P/E of 8.67, which means BP is trading at a premium to the group.
One should further note that BP currently holds a PEG ratio of 2.18. 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. The Oil and Gas – Integrated – International industry currently had an average PEG ratio of 1.91 as of yesterday’s close.
The Oil and Gas – Integrated – International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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