BP (BP) Gains But Lags Market: What You Should Know
BP (BP) closed at $24.96 in the latest trading session, marking a +0.73% move from the prior day. The stock lagged the S&P 500's daily gain of 0.93%.
Coming into today, shares of the oil and gas company had lost 0.16% in the past month. In that same time, the Oils-Energy sector lost 4.5%, while the S&P 500 gained 5.84%.
BP will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2021. The company is expected to report EPS of $0.43, up 79.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.42 billion, down 47.24% from the year-ago period.
BP's full-year Zacks Consensus Estimates are calling for earnings of $2.28 per share and revenue of $230.03 billion. These results would represent year-over-year changes of +234.91% and +25.36%, respectively.
It is also important to note the recent changes to analyst estimates for BP. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 11.3% higher within the past month. BP currently has a Zacks Rank of #2 (Buy).
Digging into valuation, BP currently has a Forward P/E ratio of 11.26. This represents a premium compared to its industry's average Forward P/E of 11.25.
We can also see that BP currently has a PEG ratio of 0.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 1.24 as of yesterday's close.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 5, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BP in the coming trading sessions, be sure to utilize Zacks.com.
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