Petrobras (PBR) ended the recent trading session at $12.62, demonstrating a -1.48% change from the preceding day's closing price. This change lagged the S&P 500's 0.49% gain on the day. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.72%.
Heading into today, shares of the oil and gas company had gained 7.2% over the past month, outpacing the Oils-Energy sector's gain of 3.95% and the S&P 500's gain of 2.99%.
Market participants will be closely following the financial results of Petrobras in its upcoming release. It is anticipated that the company will report an EPS of $0.61, marking a 34.41% fall compared to the same quarter of the previous 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.86 per share and a revenue of $86.03 billion, representing changes of -4.03% and -5.9%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Petrobras. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.38% decrease. Petrobras currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Petrobras is currently exchanging hands at a Forward P/E ratio of 4.48. Its industry sports an average Forward P/E of 10.83, 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 group has a Zacks Industry Rank of 102, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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