Petrobras (PBR) closed the most recent trading day at $15.02, moving -1.12% from the previous trading session. This move lagged the S&P 500's daily gain of 0.1%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.14%.
Shares of the oil and gas company witnessed a gain of 19.7% over the previous month, beating the performance of the Oils-Energy sector with its gain of 11.68%, and the S&P 500's loss of 1.43%.
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 $0.57 per share, which would represent year-over-year growth of 16.33%. Simultaneously, our latest consensus estimate expects the revenue to be $22.89 billion, showing a 9.99% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.28 per share and a revenue of $88.39 billion, demonstrating changes of +10.07% and -3.31%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Petrobras. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 3.09% rise in the Zacks Consensus EPS estimate. Petrobras presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Petrobras has a Forward P/E ratio of 6.83 right now. This signifies a discount in comparison to the average Forward P/E of 12.7 for its industry.
It is also worth noting that PBR currently has a PEG ratio of 0.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Integrated - International industry currently had an average PEG ratio of 4 as of yesterday's close.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 32% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
To follow PBR in the coming trading sessions, be sure to utilize 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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