BP (BP) ended the recent trading session at $30.25, demonstrating a -2.2% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.79%. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq depreciated by 0.92%.
Prior to today's trading, shares of the oil and gas company had gained 5.6% lagged the Oils-Energy sector's gain of 6.03% and outpaced the S&P 500's gain of 5.22%.
Investors will be eagerly watching for the performance of BP in its upcoming earnings disclosure. In that report, analysts expect BP to post earnings of $0.62 per share. This would mark a year-over-year decline of 38%. 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.
BP's full-year Zacks Consensus Estimates are calling for earnings of $2.31 per share and revenue of $234.66 billion. These results would represent year-over-year changes of -29.14% and +20.57%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for BP. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1% lower within the past month. BP currently has a Zacks Rank of #3 (Hold).
In terms of valuation, BP is currently trading at a Forward P/E ratio of 13.4. This indicates a premium in contrast to its industry's Forward P/E of 10.98.
One should further note that BP currently holds a PEG ratio of 1.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Oil and Gas - Integrated - International industry stood at 1.81 at the close of the market yesterday.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 160, finds itself in the bottom 36% 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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