BP (BP) ended the recent trading session at $34.47, demonstrating a +2.1% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 1.16%. Elsewhere, the Dow saw a downswing of 0.47%, while the tech-heavy Nasdaq depreciated by 1.81%.
Heading into today, shares of the oil and gas company had lost 7.99% over the past month, lagging the Oils-Energy sector's loss of 3.94% and the S&P 500's gain of 1.03%.
Market participants will be closely following the financial results of BP in its upcoming release. It is anticipated that the company will report an EPS of $0.57, marking a 29.55% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $60.43 billion, indicating a 25.66% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.04 per share and revenue of $205.23 billion. These totals would mark changes of -6.75% and +5.45%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BP. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, the Zacks Consensus EPS estimate has moved 1.71% higher. At present, BP boasts a Zacks Rank of #3 (Hold).
With respect to valuation, BP is currently being traded at a Forward P/E ratio of 11.1. This denotes a premium relative to the industry average Forward P/E of 10.66.
It is also worth noting that BP currently has a PEG ratio of 1.59. 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. As of the close of trade yesterday, the Oil and Gas - Integrated - International industry held an average PEG ratio of 1.77.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 38% of all 250+ industries.
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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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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