Petrobras (PBR) closed at $15.26 in the latest trading session, marking a +2.62% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.47%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.9%.
Prior to today's trading, shares of the oil and gas company had gained 25.17% outpaced the Oils-Energy sector's gain of 13.69% and the S&P 500's loss of 0.16%.
Analysts and investors alike will be keeping a close eye on the performance of Petrobras in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.52, reflecting a 6.12% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $22.43 billion, showing a 7.78% escalation compared to the year-ago quarter.
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 -4.37%, respectively, from last year.
Any recent changes to analyst estimates for Petrobras should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.24% higher within the past month. Petrobras is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Petrobras is holding a Forward P/E ratio of 6.81. This represents a discount compared to its industry average Forward P/E of 12.29.
Investors should also note that PBR has a PEG ratio of 0.3 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 2.38 based on yesterday's closing prices.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 36% of all 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.
You can find more information on all of these metrics, and much 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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