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BP (BP) Gains But Lags Market: What You Should Know

In the latest trading session, BP (BP) closed at $23.11, marking a +0.09% move from the previous day. This move lagged the S&P 500's daily gain of 1.52%.

Coming into today, shares of the oil and gas company had lost 14.29% in the past month. In that same time, the Oils-Energy sector lost 8.07%, while the S&P 500 gained 2.41%.

Investors will be hoping for strength from BP as it approaches its next earnings release, which is expected to be August 3, 2021. On that day, BP is projected to report earnings of $0.57 per share, which would represent year-over-year growth of 128.79%. Meanwhile, our latest consensus estimate is calling for revenue of $35.09 billion, up 12.49% from the prior-year quarter.

BP's full-year Zacks Consensus Estimates are calling for earnings of $2.74 per share and revenue of $148.39 billion. These results would represent year-over-year changes of +262.13% and -19.14%, respectively.

Investors might also notice recent changes to analyst estimates for BP. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 12.13% higher. BP is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, BP is currently trading at a Forward P/E ratio of 8.42. For comparison, its industry has an average Forward P/E of 7.08, which means BP is trading at a premium to the group.

Also, we should mention that BP has a PEG ratio of 0.49. 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 was holding an average PEG ratio of 0.52 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 43, putting it in the top 17% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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