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BP (BP) Stock Falls Amid Market Uptick: What Investors Need to Know

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BP (BP - Free Report) closed at $38.79 in the latest trading session, marking a -0.28% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.73%. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.93%.

The oil and gas company's stock has climbed by 0.39% in the past month, exceeding the Oils-Energy sector's loss of 0.7% and the S&P 500's loss of 2.29%.

The investment community will be closely monitoring the performance of BP in its forthcoming earnings report. The company is scheduled to release its earnings on October 31, 2023. In that report, analysts expect BP to post earnings of $1.37 per share. This would mark a year-over-year decline of 47.1%. Meanwhile, our latest consensus estimate is calling for revenue of $66.29 billion, up 14.67% from the prior-year quarter.

BP's full-year Zacks Consensus Estimates are calling for earnings of $5.53 per share and revenue of $240.1 billion. These results would represent year-over-year changes of -36.73% and -3.53%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for BP. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.14% higher. BP is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, BP is currently exchanging hands at a Forward P/E ratio of 7.04. This denotes a premium relative to the industry's average Forward P/E of 6.73.

Also, we should mention that BP has a PEG ratio of 1.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 0.84.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 38, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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