BP (BP) closed at $31.58 in the latest trading session, marking a +1.35% increase from the previous day. This performance outpaced the S&P 500's 0.84% loss on the day. Meanwhile, the Dow lost 0.7%, while the tech-heavy Nasdaq declined 0.91%.
The oil and gas company's stock has risen by 4.7% in the past month, leading the Oils-Energy sector's 0% loss and outpacing the S&P 500's 1.44% gain.
Market participants will be closely watching BP's upcoming financial results, which are expected to show an EPS of $0.62, marking a 38% fall compared to the same quarter of the previous year. The company's most recent consensus estimate projects a revenue of $60.31 billion, reflecting a 24.99% rise from the equivalent quarter last year.
For the entire fiscal year, Zacks Consensus Estimates predict earnings of $2.33 per share and a revenue of $234.66 billion, indicating changes of -28.53% and +20.57%, respectively, from the previous year.
Investors should also pay attention to any latest changes in analyst estimates for BP, as these revisions typically reflect the latest short-term business trends. Positive revisions in estimates convey analysts' confidence in the business performance and profit potential. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, with stocks rated #1 producing an average annual return of +25% since 1988. BP currently holds a Zacks Rank of #3 (Hold), with its consensus EPS projection having moved 9.25% lower in the past 30 days.
In terms of valuation, BP is currently trading with a Forward P/E ratio of 13.36, indicating a premium compared to its industry's Forward P/E of 10.93. The company also has a PEG ratio of 2.03, which takes into account its expected earnings growth rate. The Oil and Gas - Integrated - International industry has an average PEG ratio of 1.86 as of yesterday's close of trade.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector and ranks in the bottom 18% of all industries with a Zacks Industry Rank of 203, out of over 250 industries. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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