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

Zacks Equity Research
·2-min read

In the latest trading session, BP (BP) closed at $16.05, marking a -0.31% move from the previous day. This move lagged the S&P 500's daily gain of 0.35%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.37%.

Heading into today, shares of the oil and gas company had lost 10.21% over the past month, lagging the Oils-Energy sector's loss of 1.93% and the S&P 500's gain of 4.32% in that time.

Wall Street will be looking for positivity from BP as it approaches its next earnings report date. This is expected to be October 27, 2020. On that day, BP is projected to report earnings of -$0.09 per share, which would represent a year-over-year decline of 113.64%. Meanwhile, our latest consensus estimate is calling for revenue of $60.02 billion, down 13.39% from the prior-year quarter.

BP's full-year Zacks Consensus Estimates are calling for earnings of -$1.64 per share and revenue of $194.76 billion. These results would represent year-over-year changes of -155.59% and -31.09%, respectively.

It is also important to note the recent changes to analyst estimates for BP. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 1.55% lower within the past month. BP is currently sporting a Zacks Rank of #4 (Sell).

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 244, which puts it in the bottom 4% 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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