Petrobras (PBR) closed at $13.78 in the latest trading session, marking a +1.25% move from the prior day. This change outpaced the S&P 500's 0.54% loss on the day. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the oil and gas company had gained 24.86% in the past month. In that same time, the Oils-Energy sector gained 10.99%, while the S&P 500 lost 7.87%.
Investors will be hoping for strength from Petrobras as it approaches its next earnings release. In that report, analysts expect Petrobras to post earnings of $0.78 per share. This would mark a year-over-year decline of 4.88%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.44 billion, up 75.69% from the year-ago period.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.57% higher. Petrobras is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Petrobras has a Forward P/E ratio of 4.64 right now. This valuation marks a discount compared to its industry's average Forward P/E of 5.54.
Investors should also note that PBR has a PEG ratio of 0.2 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Integrated - Emerging Markets was holding an average PEG ratio of 0.18 at yesterday's closing price.
The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
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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