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Petrobras (PBR) Stock Moves -1.52%: What You Should Know

Zacks Equity Research
NantHealth, Inc. (NH) delivered earnings and revenue surprises of 23.08% and -10.83%, respectively, for the quarter ended September 2018. Do the numbers hold clues to what lies ahead for the stock?

Petrobras (PBR) closed the most recent trading day at $14.87, moving -1.52% from the previous trading session. This change was narrower than the S&P 500's 2.06% loss on the day. Elsewhere, the Dow lost 2.13%, while the tech-heavy Nasdaq lost 1.25%.

Heading into today, shares of the oil and gas company had gained 40.6% over the past month, outpacing the Oils-Energy sector's gain of 4.62% and the S&P 500's loss of 3.01% in that time.

Wall Street will be looking for positivity from PBR as it approaches its next earnings report date. This is expected to be November 13, 2018. The company is expected to report EPS of $0.45, up 1400% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.93 billion, up 9.81% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.70 per share and revenue of $97.38 billion. These totals would mark changes of +142.86% and +9.63%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for PBR. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 3.67% higher within the past month. PBR is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, PBR is holding a Forward P/E ratio of 8.9. For comparison, its industry has an average Forward P/E of 9.31, which means PBR is trading at a discount to the group.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% 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.

To follow PBR in the coming trading sessions, be sure to utilize Zacks.com.

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