In the latest close session, Petrobras (PBR) was up +1.66% at $15.28. The stock outpaced the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 1.43%.
The oil and gas company's shares have seen an increase of 28.02% over the last month, surpassing the Oils-Energy sector's gain of 7.71% and the S&P 500's gain of 1.8%.
The upcoming earnings release of Petrobras will be of great interest to investors. The company is predicted to post an EPS of $0.52, indicating a 6.12% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $22.43 billion, indicating a 7.78% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.29 per share and revenue of $87.42 billion. These totals would mark changes of +10.4% and 0%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Petrobras. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.24% higher. Petrobras presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Petrobras is holding a Forward P/E ratio of 6.88. This indicates a discount in contrast to its industry's Forward P/E of 12.11.
It is also worth noting that PBR currently has a PEG ratio of 0.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Integrated - International industry had an average PEG ratio of 2.15 as trading concluded yesterday.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 229, this industry ranks in the bottom 7% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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