BP (BP) closed the most recent trading day at $ 45.15, moving -1.87% from the previous trading session. This change was narrower than the S&P 500’s 3.29% loss on the day. Elsewhere, the Dow lost 3.15%, while the tech-heavy Nasdaq lost 4.08%.
Coming into today, shares of the oil and gas company had gained 7.88% in the past month. In that same time, the Oils-Energy sector gained 7.88%, while the S&P 500 gained 0.44%.
Wall Street will be looking for positivity from BP as it approaches its next earnings report date. This is expected to be October 30, 2018. On that day, BP is projected to report earnings of $ 0.86 per share, which would represent year-over-year growth of 50.88%.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $ 3.43 per share and revenue of $ 294.63 billion. These totals would mark changes of +82.45% and +20.46%, respectively, from last year.
Any recent changes to analyst estimates for BP should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 0.78% higher within the past month. BP is currently a Zacks Rank #2 (Buy).
Investors should also note BP’s current valuation metrics, including its Forward P/E ratio of 13.42. This valuation marks a premium compared to its industry’s average Forward P/E of 11.51.
We can also see that BP currently has a PEG ratio of 3.36. 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 1.49 at yesterday’s closing price.
The Oil and Gas – Integrated – International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 12% 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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