BP (BP) Stock Sinks As Market Gains: Here's Why

BP (BP) closed the most recent trading day at $36.95, moving -1.07% from the previous trading session. This change lagged the S&P 500's 0.79% gain on the day. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 1.52%.

Prior to today's trading, shares of the oil and gas company had lost 13.02% lagged the Oils-Energy sector's loss of 4.84% and the S&P 500's loss of 1.82%.

Analysts and investors alike will be keeping a close eye on the performance of BP in its upcoming earnings disclosure. The company's earnings report is set to go public on August 4, 2026. The company is forecasted to report an EPS of $1.09, showcasing a 21.11% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $63.05 billion, showing a 32.25% escalation compared to the year-ago quarter.

BP's full-year Zacks Consensus Estimates are calling for earnings of $5.24 per share and revenue of $230.14 billion. These results would represent year-over-year changes of +81.94% and +19.52%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for BP. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.06% lower. BP is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, BP is at present trading with a Forward P/E ratio of 7.12. For comparison, its industry has an average Forward P/E of 7.12, which means BP is trading at no noticeable deviation to the group.

Meanwhile, BP's PEG ratio is currently 0.67. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 0.58 as of yesterday's close.

Story Continues

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 99, finds itself in the top 41% echelons 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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