In the latest trading session, BP (BP) closed at $30.32, marking a -2.98% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.96%. At the same time, the Dow added 0.89%, and the tech-heavy Nasdaq gained 0.94%.
The oil and gas company's shares have seen an increase of 7.43% over the last month, surpassing the Oils-Energy sector's gain of 6.67% and the S&P 500's gain of 0.5%.
The upcoming earnings release of BP will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.62, reflecting a 38% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $60.31 billion, up 24.99% from the year-ago period.
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.
It's also important for investors to be aware of any recent modifications 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 business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% lower. Currently, BP is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, BP is currently exchanging hands at a Forward P/E ratio of 13.4. For comparison, its industry has an average Forward P/E of 11.11, which means BP is trading at a premium to the group.
One should further note that BP currently holds a PEG ratio of 2.03. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Integrated - International was holding an average PEG ratio of 1.89 at yesterday's closing price.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 202, finds itself in the bottom 18% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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