In the latest market close, BP (BP) reached $30.81, with a +1.92% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.27%.
The oil and gas company's shares have seen a decrease of 1.08% over the last month, not keeping up with the Oils-Energy sector's gain of 4.61% and the S&P 500's gain of 6.9%.
The investment community will be closely monitoring the performance of BP in its forthcoming earnings report. The company is predicted to post an EPS of $0.62, indicating a 38% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $60.31 billion, indicating a 24.99% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.33 per share and revenue of $234.66 billion, indicating changes of -28.53% and +20.57%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for BP. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 12.18% lower. Currently, BP is carrying a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that BP has a Forward P/E ratio of 12.96 right now. This represents a premium compared to its industry average Forward P/E of 10.48.
One should further note that BP currently holds a PEG ratio of 1.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 1.83 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 229, putting it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BP p.l.c. (BP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
