In the latest close session, Petrobras (PBR) was up +1.05% at $12.51. The stock's change was more than the S&P 500's daily gain of 0.52%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 0.48%.
The oil and gas company's stock has climbed by 7.28% in the past month, exceeding the Oils-Energy sector's gain of 3.92% and the S&P 500's gain of 4.27%.
Investors will be eagerly watching for the performance of Petrobras in its upcoming earnings disclosure. In that report, analysts expect Petrobras to post earnings of $0.65 per share. This would mark year-over-year growth of 38.3%. In the meantime, our current consensus estimate forecasts the revenue to be $20.25 billion, indicating a 13.7% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.79 per share and revenue of $82.27 billion, which would represent changes of -6.38% and -10%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Petrobras. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 1.27% higher. Currently, Petrobras is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Petrobras has a Forward P/E ratio of 4.45 right now. This represents a discount compared to its industry average Forward P/E of 11.18.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 185, this industry ranks in the bottom 25% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many 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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