BP (BP) Stock Slides as Market Rises: Facts to Know Before You Trade
BP (BP) closed the latest trading day at $35.56, indicating a -0.31% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.85%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 1.53%.
The the stock of oil and gas company has fallen by 6.03% in the past month, lagging the Oils-Energy sector's loss of 4.55% and the S&P 500's gain of 3.11%.
The investment community will be closely monitoring the performance of BP in its forthcoming earnings report. In that report, analysts expect BP to post earnings of $1.22 per share. This would mark year-over-year growth of 37.08%. In the meantime, our current consensus estimate forecasts the revenue to be $63.26 billion, indicating a 27.86% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $4.80 per share and a revenue of $241.74 billion, demonstrating changes of +0.42% and +13.48%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for BP. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.33% lower. Right now, BP possesses a Zacks Rank of #3 (Hold).
In terms of valuation, BP is currently trading at a Forward P/E ratio of 7.44. This expresses a premium compared to the average Forward P/E of 7.07 of its industry.
We can additionally observe that BP currently boasts a PEG ratio of 1.86. 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. The Oil and Gas - Integrated - International industry had an average PEG ratio of 1.81 as trading concluded yesterday.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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BP p.l.c. (BP) : Free Stock Analysis Report
