BP (BP) Stock Sinks As Market Gains: What You Should Know

BP (BP) closed the most recent trading day at $26.72, moving -1.58% from the previous trading session. This change lagged the S&P 500's daily gain of 0.36%. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.1%.

Coming into today, shares of the oil and gas company had lost 20.59% in the past month. In that same time, the Oils-Energy sector lost 19.28%, while the S&P 500 lost 6.59%.

BP will be looking to display strength as it nears its next earnings release, which is expected to be August 2, 2022. On that day, BP is projected to report earnings of $1.62 per share, which would represent year-over-year growth of 95.18%. Our most recent consensus estimate is calling for quarterly revenue of $50.5 billion, up 34.31% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.76 per share and revenue of $210.35 billion, which would represent changes of +76.96% and +28.11%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for BP. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. BP is currently a Zacks Rank #2 (Buy).

Digging into valuation, BP currently has a Forward P/E ratio of 4.02. For comparison, its industry has an average Forward P/E of 4.63, which means BP is trading at a discount to the group.

It is also worth noting that BP currently has a PEG ratio of 0.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 0.5 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 84, putting it in the top 34% 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.

To follow BP in the coming trading sessions, be sure to utilize Zacks.com.

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