Petrobras (PBR) closed at $19.98 in the latest trading session, marking a -3.52% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 2.51% for the day. Meanwhile, the Dow experienced a rise of 2.85%, and the technology-dominated Nasdaq saw an increase of 2.8%.
Coming into today, shares of the oil and gas company had gained 15.12% in the past month. In that same time, the Oils-Energy sector gained 7.33%, while the S&P 500 lost 1.66%.
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 $0.98, marking a 58.06% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $22.89 billion, indicating a 8.63% increase compared to the same quarter of the previous 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.
Investors might also notice recent changes to analyst estimates for Petrobras. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 30.33% higher within the past month. 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 6.22. This indicates a discount in contrast to its industry's Forward P/E of 10.86.
It is also worth noting that PBR currently has a PEG ratio of 0.18. 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. As of the close of trade yesterday, the Oil and Gas - Integrated - International industry held an average PEG ratio of 0.78.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 6, putting it in the top 3% 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.
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
This article originally published on Zacks Investment Research (zacks.com).