Petrobras (PBR) closed the most recent trading day at $21.85, moving +2.92% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.04% for the day. On the other hand, the Dow registered a loss of 0.57%, and the technology-centric Nasdaq increased by 0.04%.
Prior to today's trading, shares of the oil and gas company had gained 2.31% outpaced the Oils-Energy sector's loss of 3.74% and lagged the S&P 500's gain of 12.24%.
Market participants will be closely following the financial results of Petrobras in its upcoming release. The company's upcoming EPS is projected at $0.91, signifying a 46.77% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $25.78 billion, reflecting a 22.34% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.18 per share and revenue of $117.76 billion, indicating changes of +49.29% and +32.02%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Petrobras. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 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 25.53% higher. Right now, Petrobras possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Petrobras is presently being traded at a Forward P/E ratio of 5.08. This indicates a discount in contrast to its industry's Forward P/E of 7.88.
We can additionally observe that PBR currently boasts a PEG ratio of 0.88. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Oil and Gas - Integrated - International industry was having an average PEG ratio of 0.65.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 3, this industry ranks in the top 2% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).