Petrobras (PBR) Gains As Market Dips: What You Should Know

Petrobras (PBR) closed at $12.61 in the latest trading session, marking a +1.2% move from the prior day. This change outpaced the S&P 500's 0.97% loss on the day. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq added 0.23%.

Prior to today's trading, shares of the oil and gas company had gained 17.88% over the past month. This has outpaced the Oils-Energy sector's gain of 14.52% and the S&P 500's loss of 0.78% in that time.

Wall Street will be looking for positivity from Petrobras as it approaches its next earnings report date. The company is expected to report EPS of $0.78, down 4.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $24.44 billion, up 75.69% from the prior-year quarter.

Any recent changes to analyst estimates for Petrobras should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.57% higher. Petrobras is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Petrobras has a Forward P/E ratio of 4.25 right now. Its industry sports an average Forward P/E of 5.65, so we one might conclude that Petrobras is trading at a discount comparatively.

Investors should also note that PBR has a PEG ratio of 0.18 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Integrated - Emerging Markets industry currently had an average PEG ratio of 0.18 as of yesterday's close.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 Report
 
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