The latest trading session saw Petrobras (PBR) ending at $11.35, denoting a +0.53% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.21%, and the technology-dominated Nasdaq saw an increase of 1.52%.
Coming into today, shares of the oil and gas company had lost 21.54% in the past month. In that same time, the Oils-Energy sector lost 11.18%, while the S&P 500 lost 0.7%.
Market participants will be closely following the financial results of Petrobras in its upcoming release. The company is expected to report EPS of $0.91, up 21.33% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $20.92 billion, indicating a 12% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.94 per share and a revenue of $85.75 billion, demonstrating changes of -1.34% and -6.2%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Petrobras. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 6.15% lower. Petrobras is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, Petrobras is currently exchanging hands at a Forward P/E ratio of 3.84. This valuation marks a discount compared to its industry's average Forward P/E of 8.77.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 183, placing it within the bottom 26% of over 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.
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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