In the latest close session, Petrobras (PBR) was up +2.43% at $15.39. The stock outpaced the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 0.17%.
Coming into today, shares of the oil and gas company had gained 26.64% in the past month. In that same time, the Oils-Energy sector gained 9.39%, while the S&P 500 gained 0.78%.
The upcoming earnings release of Petrobras will be of great interest to investors. On that day, Petrobras is projected to report earnings of $0.52 per share, which would represent year-over-year growth of 6.12%. In the meantime, our current consensus estimate forecasts the revenue to be $22.43 billion, indicating a 7.78% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.22 per share and a revenue of $87.42 billion, indicating changes of +8.05% and 0%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Petrobras. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Petrobras possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Petrobras is at present trading with a Forward P/E ratio of 6.96. Its industry sports an average Forward P/E of 12.15, so one might conclude that Petrobras is trading at a discount comparatively.
We can also see that PBR currently has a PEG ratio of 0.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 2.44 based on yesterday's closing prices.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 225, placing it within the bottom 9% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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