Petrobras (PBR) closed the most recent trading day at $15.29, moving +1.8% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.56%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 0.78%.
The oil and gas company's stock has climbed by 17.07% in the past month, exceeding the Oils-Energy sector's gain of 10.77% and the S&P 500's loss of 1.27%.
The investment community will be paying close attention to the earnings performance of Petrobras in its upcoming release. In that report, analysts expect Petrobras to post earnings of $0.57 per share. This would mark year-over-year growth of 16.33%. At the same time, our most recent consensus estimate is projecting a revenue of $22.89 billion, reflecting a 9.99% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.28 per share and revenue of $88.39 billion, indicating changes of +10.07% and -3.31%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Petrobras. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
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. The Zacks Consensus EPS estimate has moved 3.09% higher within the past month. Petrobras is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Petrobras is at present trading with a Forward P/E ratio of 6.76. This valuation marks a discount compared to its industry average Forward P/E of 12.74.
We can additionally observe that PBR currently boasts a PEG ratio of 0.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 4.02.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 28% of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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