Petrobras (PBR) closed the most recent trading day at $12.85, moving +1.74% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.47%. Elsewhere, the Dow saw an upswing of 0.11%, while the tech-heavy Nasdaq appreciated by 0.94%.
Heading into today, shares of the oil and gas company had gained 4.64% over the past month, outpacing the Oils-Energy sector's gain of 2.51% and the S&P 500's gain of 2.32%.
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. Alongside, our most recent consensus estimate is anticipating revenue of $21.73 billion, indicating a 7.01% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.86 per share and a revenue of $86.03 billion, indicating changes of -4.03% and -5.9%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Petrobras. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 1.38% lower. At present, Petrobras boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Petrobras is holding a Forward P/E ratio of 4.42. Its industry sports an average Forward P/E of 10.77, so one might conclude that Petrobras is trading at a discount comparatively.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 39% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
