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Petrobras (PBR) Gains But Lags Market: What You Should Know
Petrobras (PBR - Free Report) closed at $10.02 in the latest trading session, marking a +0.4% move from the prior day. This change lagged the S&P 500's 1.76% gain on the day. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 3.03%.
Heading into today, shares of the oil and gas company had lost 14.11% over the past month, lagging the Oils-Energy sector's loss of 12.2% and the S&P 500's loss of 5.94% in that time.
Petrobras will be looking to display strength as it nears its next earnings release. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.75 billion, up 2.05% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.79 per share and revenue of $115.2 billion, which would represent changes of -28.36% and -7.45%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Petrobras. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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 0.87% lower. Petrobras is currently a Zacks Rank #3 (Hold).
Digging into valuation, Petrobras currently has a Forward P/E ratio of 2.63. For comparison, its industry has an average Forward P/E of 3.54, which means Petrobras is trading at a discount to the group.
It is also worth noting that PBR currently has a PEG ratio of 1.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Integrated - Emerging Markets industry currently had an average PEG ratio of 1.4 as of yesterday's close.
The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.