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Petrobras (PBR) Suffers a Larger Drop Than the General Market: Key Insights

The latest trading session saw Petrobras (PBR) ending at $13.59, denoting a -1.52% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.04% for the day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.12%.

Shares of the oil and gas company have depreciated by 9.39% over the course of the past month, underperforming the Oils-Energy sector's loss of 6.02% and the S&P 500's gain of 4.15%.

Analysts and investors alike will be keeping a close eye on the performance of Petrobras in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.86, marking a 4.44% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $24.66 billion, reflecting a 7.31% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.54 per share and a revenue of $98.78 billion, indicating changes of -15.31% and -3.54%, respectively, from the former year.

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Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Petrobras. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.19% lower. Petrobras presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Petrobras is currently being traded at a Forward P/E ratio of 3.9. This indicates a discount in contrast to its industry's Forward P/E of 4.26.

Also, we should mention that PBR has a PEG ratio of 0.14. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. PBR's industry had an average PEG ratio of 0.6 as of yesterday's close.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 39% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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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