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

·3 min read

Petrobras (PBR) closed at $11.55 in the latest trading session, marking a -0.52% move from the prior day. This move lagged the S&P 500's daily gain of 2.45%. Elsewhere, the Dow gained 2.15%, while the tech-heavy Nasdaq added 0.18%.

Coming into today, shares of the oil and gas company had lost 28.6% in the past month. In that same time, the Oils-Energy sector lost 9.07%, while the S&P 500 lost 5.71%.

Petrobras will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.94, down 20.34% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $29.14 billion, up 38.89% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.45 per share and revenue of $110.9 billion, which would represent changes of +86.97% and +32.08%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Petrobras is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, Petrobras currently has a Forward P/E ratio of 2.61. This represents a discount compared to its industry's average Forward P/E of 3.87.

We can also see that PBR currently has a PEG ratio of 1.07. 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 1.07 as of yesterday's close.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 14, which puts it in the top 6% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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