Yahoo Finance Petrobras (PBR) Stock Sinks As Market Gains: What You Should Know
Petrobras (PBR) closed the most recent trading day at $11.05, moving -1.25% from the previous trading session. This change lagged the S&P 500's daily gain of 1.29%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, lost 4.94%.
Heading into today, shares of the oil and gas company had gained 9.28% over the past month, outpacing the Oils-Energy sector's loss of 0.08% and the S&P 500's gain of 5.64% in that time.
Wall Street will be looking for positivity from Petrobras as it approaches its next earnings report date. In that report, analysts expect Petrobras to post earnings of $0.97 per share. This would mark year-over-year growth of 49.23%. Our most recent consensus estimate is calling for quarterly revenue of $28.71 billion, up 19.49% from the year-ago period.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 3.76% lower within the past month. Petrobras currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Petrobras is currently trading at a Forward P/E ratio of 3.13. For comparison, its industry has an average Forward P/E of 3.82, which means Petrobras is trading at a discount to the group.
We can also see that PBR currently has a PEG ratio of 1.66. 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 was holding an average PEG ratio of 0.87 at yesterday's closing price.
The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 22% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
