Petrobras (PBR) Rises But Trails Market: What Investors Should Know
In the latest trading session, Petrobras (PBR) closed at $17.16, marking a +0.65% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.76%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 1.12%.
The oil and gas company's shares have seen an increase of 6.76% over the last month, surpassing the Oils-Energy sector's loss of 2.82% and the S&P 500's gain of 2.5%.
Investors will be eagerly watching for the performance of Petrobras in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.99, indicating a 20.8% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $26.54 billion, reflecting a 12.03% fall from the equivalent quarter last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Petrobras. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.41% decrease. Right now, Petrobras possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Petrobras is currently trading at a Forward P/E ratio of 4.84. Its industry sports an average Forward P/E of 4.83, so one might conclude that Petrobras is trading at a premium comparatively.
The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
