Petrobras (PBR) Ascends While Market Falls: Some Facts to Note

In the latest trading session, Petrobras (PBR) closed at $13.13, marking a +2.34% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.07%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw an increase of 0.03%.

Prior to today's trading, shares of the oil and gas company had gained 14.25% outpaced the Oils-Energy sector's gain of 3.17% and the S&P 500's gain of 3.94%.

The upcoming earnings release of Petrobras will be of great interest to investors. The company is expected to report EPS of $0.64, up 36.17% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $20.01 billion, indicating a 14.73% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.73 per share and a revenue of $81.97 billion, signifying shifts of -8.39% and -10.33%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Petrobras. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 2.09% lower. Petrobras presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Petrobras is presently being traded at a Forward P/E ratio of 4.71. This denotes a discount relative to the industry average Forward P/E of 10.77.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 35% of all 250+ industries.

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.

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

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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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