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Petrobras (PBR) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, Petrobras (PBR - Free Report) closed at $12.44, marking a -1.43% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.17%, while the tech-heavy Nasdaq appreciated by 0.39%.

The stock of oil and gas company has risen by 2.52% in the past month, leading the Oils-Energy sector's gain of 0.54% and undershooting the S&P 500's gain of 3.94%.

The investment community will be closely monitoring the performance of Petrobras in its forthcoming earnings report. The company is predicted to post an EPS of $0.61, indicating a 34.41% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $21.73 billion, down 7.01% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.86 per share and revenue of $86.03 billion, indicating changes of -4.03% and -5.9%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Petrobras. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 1.38% fall in the Zacks Consensus EPS estimate. Petrobras is currently a Zacks Rank #3 (Hold).

With respect to valuation, Petrobras is currently being traded at a Forward P/E ratio of 4.42. This indicates a discount in contrast to its industry's Forward P/E of 10.65.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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