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Petrobras (PBR) Increases Despite Market Slip: Here's What You Need to Know

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In the latest trading session, Petrobras (PBR - Free Report) closed at $14.22, marking a +0.07% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.76%. Elsewhere, the Dow saw a downswing of 0.28%, while the tech-heavy Nasdaq depreciated by 1.2%.

The the stock of oil and gas company has risen by 9.14% in the past month, leading the Oils-Energy sector's gain of 4.11% and the S&P 500's gain of 2.71%.

Market participants will be closely following the financial results of Petrobras in its upcoming release. The company is predicted to post an EPS of $0.82, indicating a 35.43% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $22.63 billion, down 16.5% from the prior-year quarter.

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 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.21% lower. Currently, Petrobras is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Petrobras is currently exchanging hands at a Forward P/E ratio of 4.73. This valuation marks a discount compared to its industry's average Forward P/E of 8.43.

We can additionally observe that PBR currently boasts 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. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 1.83.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 32% echelons 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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