BHP (BHP) closed the most recent trading day at $78.37, moving +1.52% from the previous trading session. This change outpaced the S&P 500’s 0.82% gain on the day.
Prior to today’s trading, shares of the global miner had gained 8.5% over the past month. This has outpaced the Basic Materials sector’s gain of 8.18% and the S&P 500’s gain of 2.31% in that time.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.44 per share and revenue of $58.28 billion. These totals would mark changes of +79.89% and +31.59%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BHP. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.7% higher. BHP is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that BHP has a Forward P/E ratio of 12 right now. This valuation marks a no noticeable deviation compared to its industry’s average Forward P/E of 12.
We can also see that BHP currently has a PEG ratio of 2.89. 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. BHP’s industry had an average PEG ratio of 2.16 as of yesterday’s close.
The Mining – Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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