Back to top

Image: Bigstock

Petrobras (PBR) Increases Despite Market Slip: Here's What You Need to Know

Read MoreHide Full Article

Petrobras (PBR - Free Report) closed the most recent trading day at $12.91, moving +1.18% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.49%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.65%.

The oil and gas company's shares have seen a decrease of 0.55% over the last month, not keeping up with the Oils-Energy sector's gain of 0.23% and the S&P 500's gain of 0.96%.

Analysts and investors alike will be keeping a close eye on the performance of Petrobras in its upcoming earnings disclosure. The company is expected to report EPS of $0.71, up 51.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.82 billion, down 11.29% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.7 per share and revenue of $83.57 billion, which would represent changes of -9.4% and -8.58%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Petrobras. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.1% lower. Petrobras presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Petrobras is at present trading with a Forward P/E ratio of 4.73. This valuation marks a discount compared to its industry average Forward P/E of 11.3.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 181, this industry ranks in the bottom 27% of all industries, numbering over 250.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Petroleo Brasileiro S.A.- Petrobras (PBR) - free report >>

Published in