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Petrobras (PBR) Dips More Than Broader Markets: What You Should Know

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Petrobras (PBR) closed the most recent trading day at $9.52, moving -1.96% from the previous trading session. This change lagged the S&P 500's 1.7% loss on the day.

Coming into today, shares of the oil and gas company had lost 3.86% in the past month. In that same time, the Oils-Energy sector gained 3.9%, while the S&P 500 lost 0.27%.

Investors will be hoping for strength from PBR as it approaches its next earnings release. In that report, analysts expect PBR to post earnings of $0.61 per share. This would mark year-over-year growth of 577.78%. Meanwhile, our latest consensus estimate is calling for revenue of $22.25 billion, up 69.21% from the prior-year quarter.

PBR's full-year Zacks Consensus Estimates are calling for earnings of $2.33 per share and revenue of $79.71 billion. These results would represent year-over-year changes of +441.86% and +48.48%, respectively.

Investors might also notice recent changes to analyst estimates for PBR. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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. Within the past 30 days, our consensus EPS projection has moved 8.02% higher. PBR is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, PBR is holding a Forward P/E ratio of 4.16. Its industry sports an average Forward P/E of 5.53, so we one might conclude that PBR is trading at a discount comparatively.

Meanwhile, PBR's PEG ratio is currently 0.2. 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. The Oil and Gas - Integrated - Emerging Markets industry currently had an average PEG ratio of 0.2 as of yesterday's close.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 6, which puts it in the top 3% 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 PBR in the coming trading sessions, be sure to utilize Zacks.com.


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