Back to top

Image: Bigstock

PetroChina (PTR) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

In the latest trading session, PetroChina (PTR - Free Report) closed at $47.02, marking a +1.36% move from the previous day. This change lagged the S&P 500's 3.06% gain on the day. Meanwhile, the Dow gained 2.68%, and the Nasdaq, a tech-heavy index, added 0.05%.

Prior to today's trading, shares of the oil and gas company had lost 11.27% over the past month. This has was narrower than the Oils-Energy sector's loss of 12.66% and lagged the S&P 500's loss of 4.31% in that time.

PetroChina will be looking to display strength as it nears its next earnings release.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.16 per share and revenue of $464.89 billion. These totals would mark changes of +44% and +14.66%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for PetroChina. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PetroChina is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that PetroChina has a Forward P/E ratio of 4.16 right now. For comparison, its industry has an average Forward P/E of 4.86, which means PetroChina is trading at a discount to the group.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


PetroChina Company Limited (PTR) - free report >>

Published in