BP (BP) Outpaces Stock Market Gains: What You Should Know

·3 min read

BP (BP) closed the most recent trading day at $29.93, moving +1.63% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.75%.

Coming into today, shares of the oil and gas company had gained 16.22% in the past month. In that same time, the Oils-Energy sector gained 14.35%, while the S&P 500 lost 0.05%.

BP will be looking to display strength as it nears its next earnings release, which is expected to be November 2, 2021. In that report, analysts expect BP to post earnings of $0.88 per share. This would mark year-over-year growth of 2833.33%. Meanwhile, our latest consensus estimate is calling for revenue of $38.54 billion, down 12.82% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.51 per share and revenue of $153.01 billion, which would represent changes of +307.69% and -16.62%, respectively, from the prior year.

Any recent changes to analyst estimates for BP should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 7.24% higher. BP is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, BP is holding a Forward P/E ratio of 8.4. For comparison, its industry has an average Forward P/E of 8.67, which means BP is trading at a discount to the group.

Meanwhile, BP's PEG ratio is currently 0.53. 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. BP's industry had an average PEG ratio of 0.64 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 19, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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