Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Petrobras (PBR - Free Report) closed at $10.64, marking a -0.37% move from the previous day. This change lagged the S&P 500's 0.83% gain on the day.

Coming into today, shares of the oil and gas company had gained 9.54% in the past month. In that same time, the Oils-Energy sector gained 9.14%, while the S&P 500 lost 3.68%.

PBR will be looking to display strength as it nears its next earnings release. On that day, PBR is projected to report earnings of $0.61 per share, which would represent year-over-year growth of 577.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.25 billion, up 69.21% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.33 per share and revenue of $79.71 billion. These totals would mark changes of +441.86% and +48.48%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for PBR. 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 company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 remained stagnant. PBR is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, PBR is currently trading at a Forward P/E ratio of 4.58. Its industry sports an average Forward P/E of 5.8, so we one might conclude that PBR is trading at a discount comparatively.

Meanwhile, PBR's PEG ratio is currently 0.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Integrated - Emerging Markets industry currently had an average PEG ratio of 0.22 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 65, which puts it in the top 26% of all 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.

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