Why Petrobras (PBR) Outpaced the Stock Market Today
Petrobras (PBR) closed at $15.21 in the latest trading session, marking a +1.88% move from the prior day. This move outpaced the S&P 500's daily gain of 0.11%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.12%.
The the stock of oil and gas company has fallen by 10.71% in the past month, lagging the Oils-Energy sector's gain of 5.98% and the S&P 500's gain of 3.55%.
The investment community will be paying close attention to the earnings performance of Petrobras in its upcoming release. It is anticipated that the company will report an EPS of $0.78, marking a 29.73% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $24.87 billion, down 7.09% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.38 per share and a revenue of $96.83 billion, demonstrating changes of -19.14% and -5.45%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Petrobras. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.81% fall in the Zacks Consensus EPS estimate. Right now, Petrobras possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Petrobras is currently being traded at a Forward P/E ratio of 4.42. This denotes a discount relative to the industry's average Forward P/E of 4.64.
The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 219, positioning it in the bottom 14% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
