Why Petrobras (PBR) Outpaced the Stock Market Today
The most recent trading session ended with Petrobras (PBR) standing at $16.34, reflecting a +0.55% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.08% gain on the day. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.02%.
Shares of the oil and gas company have appreciated by 7.05% over the course of the past month, outperforming the Oils-Energy sector's gain of 0.61% and the S&P 500's gain of 3.52%.
Analysts and investors alike will be keeping a close eye on the performance of Petrobras in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.99, reflecting a 20.8% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.54 billion, down 12.03% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for Petrobras. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.41% decrease. As of now, Petrobras holds a Zacks Rank of #3 (Hold).
In terms of valuation, Petrobras is currently trading at a Forward P/E ratio of 4.61. For comparison, its industry has an average Forward P/E of 4.66, 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. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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
