In the latest market close, BP (BP) reached $26.59, with a +1.37% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 1.81%. At the same time, the Dow added 1.56%, and the tech-heavy Nasdaq gained 2.06%.
The oil and gas company's shares have seen a decrease of 18.97% over the last month, not keeping up with the Oils-Energy sector's loss of 10.8% and the S&P 500's loss of 6.14%.
The upcoming earnings release of BP will be of great interest to investors. The company's upcoming EPS is projected at $0.65, signifying a 32.99% 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.
BP's full-year Zacks Consensus Estimates are calling for earnings of $3.23 per share and revenue of $241.39 billion. These results would represent year-over-year changes of -0.92% and +24.02%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for BP. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 moved 1.29% lower. BP is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, BP is presently trading at a Forward P/E ratio of 8.13. Its industry sports an average Forward P/E of 7.28, so one might conclude that BP is trading at a premium comparatively.
Also, we should mention that BP has a PEG ratio of 1.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BP's industry had an average PEG ratio of 1.1 as of yesterday's close.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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BP p.l.c. (BP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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