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Petrobras (PBR) Flat As Market Sinks: What You Should Know

·3 min read

Petrobras (PBR) closed at $14.44 in the latest trading session, marking no change from the prior day. This change was narrower than the S&P 500's daily loss of 1.07%. Elsewhere, the Dow lost 1.07%, while the tech-heavy Nasdaq lost 0.07%.

Heading into today, shares of the oil and gas company had gained 2.05% over the past month, outpacing the Oils-Energy sector's gain of 1.76% and the S&P 500's loss of 3.49% in that time.

Petrobras will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.14, up 119.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.75 billion, up 40.84% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.43 per share and revenue of $122.37 billion, which would represent changes of +128.15% and +45.73%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Petrobras. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. The Zacks Consensus EPS estimate has moved 8.16% higher within the past month. Petrobras is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, Petrobras currently has a Forward P/E ratio of 2.66. This represents a no noticeable deviation compared to its industry's average Forward P/E of 2.66.

We can also see that PBR currently has a PEG ratio of 1.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Integrated - Emerging Markets industry currently had an average PEG ratio of 1.41 as of yesterday's close.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

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Petroleo Brasileiro S.A. Petrobras (PBR) : Free Stock Analysis Report
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