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Petrobras (PBR) Gains But Lags Market: What You Should Know
In the latest trading session, Petrobras (PBR - Free Report) closed at $11.46, marking a +0.97% move from the previous day. The stock lagged the S&P 500's daily gain of 1.89%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.
Prior to today's trading, shares of the oil and gas company had gained 8.1% over the past month. This has outpaced the Oils-Energy sector's gain of 5.98% and the S&P 500's gain of 2.3% in that time.
Petrobras will be looking to display strength as it nears its next earnings release. On that day, Petrobras is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 66.15%. Our most recent consensus estimate is calling for quarterly revenue of $30.2 billion, up 25.67% from the year-ago period.
Any recent changes to analyst estimates for Petrobras should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 5.82% lower. Petrobras is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Petrobras is currently trading at a Forward P/E ratio of 3.05. For comparison, its industry has an average Forward P/E of 4.01, which means Petrobras is trading at a discount to the group.
Meanwhile, PBR's PEG ratio is currently 1.62. 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 0.86 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 238, which puts it in the bottom 6% 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.