In the latest close session, Petrobras (PBR) was down 3.23% at $20.08. The stock's performance was behind the S&P 500's daily gain of 0.72%. Meanwhile, the Dow experienced a rise of 0.48%, and the technology-dominated Nasdaq saw an increase of 1.16%.
The oil and gas company's stock has climbed by 22.35% in the past month, exceeding the Oils-Energy sector's gain of 9.32% and the S&P 500's loss of 4.99%.
The investment community will be paying close attention to the earnings performance of Petrobras in its upcoming release. The company is predicted to post an EPS of $0.98, indicating a 58.06% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $22.18 billion, indicating a 5.27% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.33 per share and a revenue of $101.44 billion, demonstrating changes of +18.93% and +13.72%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Petrobras. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 41.5% higher. At present, Petrobras boasts a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Petrobras is currently being traded at a Forward P/E ratio of 6.23. This expresses a discount compared to the average Forward P/E of 10.99 of its industry.
It is also worth noting that PBR currently has a PEG ratio of 0.18. 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 1.15.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 17, finds itself in the top 7% echelons of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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).