Why the Market Dipped But Petrobras (PBR) Gained Today
In the latest market close, Petrobras (PBR) reached $17.65, with a +1.67% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.13%.
Heading into today, shares of the oil and gas company had gained 1.82% over the past month, lagging the Oils-Energy sector's gain of 5.11% and the S&P 500's gain of 4.74% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Petrobras in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.13, showcasing a 9.6% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $26.45 billion, down 12.32% from the prior-year quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Petrobras. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.33% lower. Petrobras currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Petrobras is currently trading at a Forward P/E ratio of 5.09. This represents a premium compared to its industry's average Forward P/E of 4.91.
The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 103, this industry ranks in the top 41% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
