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

·3 min read

Petrobras (PBR) closed at $13.63 in the latest trading session, marking a -1.02% move from the prior day. This change lagged the S&P 500's daily gain of 0.66%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 0.05%.

Coming into today, shares of the oil and gas company had lost 11.39% in the past month. In that same time, the Oils-Energy sector gained 4.6%, while the S&P 500 lost 3.79%.

Wall Street will be looking for positivity from Petrobras as it approaches its next earnings report date. On that day, Petrobras is projected to report earnings of $1.14 per share, which would represent year-over-year growth of 119.23%. Our most recent consensus estimate is calling for quarterly revenue of $32.75 billion, up 40.84% from the year-ago period.

PBR's full-year Zacks Consensus Estimates are calling for earnings of $5.43 per share and revenue of $122.37 billion. These results would represent year-over-year changes of +128.15% and +45.73%, respectively.

Investors might also notice recent changes to analyst estimates for Petrobras. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 6.96% higher. Petrobras is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Petrobras is currently trading at a Forward P/E ratio of 2.53. This represents a discount compared to its industry's average Forward P/E of 2.72.

Also, we should mention that PBR has a PEG ratio of 1.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Integrated - Emerging Markets industry currently had an average PEG ratio of 1.35 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 23, which puts it in the top 10% 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.

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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