Back to top

Image: Bigstock

Petrobras (PBR) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Petrobras (PBR - Free Report) closed at $11.64, marking a -1.27% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.4%. On the other hand, the Dow registered a loss of 0.04%, and the technology-centric Nasdaq increased by 0.66%.

The oil and gas company's stock has dropped by 8.89% in the past month, falling short of the Oils-Energy sector's loss of 0.65% and the S&P 500's gain of 1.02%.

Market participants will be closely following the financial results of Petrobras in its upcoming release. On that day, Petrobras is projected to report earnings of $0.61 per share, which would represent a year-over-year decline of 34.41%. In the meantime, our current consensus estimate forecasts the revenue to be $21.73 billion, indicating a 7.01% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.89 per share and a revenue of $86.03 billion, signifying shifts of -3.02% and -5.9%, respectively, from the last year.

It is also important to note the 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 business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, the Zacks Consensus EPS estimate has remained steady. Petrobras is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Petrobras is presently being traded at a Forward P/E ratio of 4.07. This signifies a discount in comparison to the average Forward P/E of 10.13 for its industry.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 196, placing it within the bottom 21% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PBR in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


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


Petroleo Brasileiro S.A.- Petrobras (PBR) - free report >>

Published in