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Why the Market Dipped But BP (BP) Gained Today

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In the latest market close, BP (BP - Free Report) reached $35.63, with a +1.37% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.07%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.36%.

The the stock of oil and gas company has fallen by 0.51% in the past month, leading the Oils-Energy sector's loss of 2.53% and undershooting the S&P 500's gain of 3.05%.

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 February 6, 2024. The company is predicted to post an EPS of $1.09, indicating a 31.45% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $59.53 billion, reflecting a 15.39% fall from the equivalent quarter last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for BP. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 10.58% lower. BP presently features a Zacks Rank of #3 (Hold).

In terms of valuation, BP is presently being traded at a Forward P/E ratio of 7.06. Its industry sports an average Forward P/E of 6.74, so one might conclude that BP is trading at a premium comparatively.

It is also worth noting that BP currently has a PEG ratio of 1.08. 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. BP's industry had an average PEG ratio of 0.82 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 111, this industry ranks in the top 45% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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