Petrobras (PBR) Stock Sinks As Market Gains: Here's Why
Petrobras (PBR) closed the most recent trading day at $15.66, moving -0.51% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.22% for the day. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.32%.
The oil and gas company's shares have seen a decrease of 0.25% over the last month, surpassing the Oils-Energy sector's loss of 5.7% and falling behind the S&P 500's gain of 1.61%.
The investment community will be closely monitoring the performance of Petrobras in its forthcoming earnings report. In that report, analysts expect Petrobras to post earnings of $0.99 per share. This would mark a year-over-year decline of 20.8%. Meanwhile, the latest consensus estimate predicts the revenue to be $26.54 billion, indicating a 12.03% decrease compared to the same quarter of the previous year.
Any recent changes to analyst estimates for Petrobras should also be noted by investors. 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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.41% downward. Petrobras is currently a Zacks Rank #3 (Hold).
Looking at valuation, Petrobras is presently trading at a Forward P/E ratio of 4.47. For comparison, its industry has an average Forward P/E of 4.52, which means Petrobras is trading at a discount to the group.
The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 228, this industry ranks in the bottom 10% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
