Petrobras (PBR) closed at $11.56 in the latest trading session, marking a -1.11% move from the prior day. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq lost 0.16%.
The oil and gas company's stock has dropped by 8.1% in the past month, falling short of the Oils-Energy sector's loss of 0.82% and the S&P 500's gain of 1.16%.
The investment community will be closely monitoring the performance of Petrobras in its forthcoming earnings report. 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.73 billion, down 7.01% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.89 per share and revenue of $86.03 billion, indicating changes of -3.02% and -5.9%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments 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.
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, 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 1.25% higher. Petrobras currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Petrobras is currently being traded at a Forward P/E ratio of 4.04. Its industry sports an average Forward P/E of 10.56, 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 205, which puts it in the bottom 18% 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.
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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Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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