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

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In the latest trading session, Petrobras (PBR - Free Report) closed at $14.46, marking a +1.9% move from the previous day. This change outpaced the S&P 500's 1.43% gain on the day. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, added 0.32%.

Prior to today's trading, shares of the oil and gas company had lost 2.54% over the past month. This has lagged the Oils-Energy sector's gain of 10.65% and the S&P 500's gain of 5.65% in that time.

Petrobras will be looking to display strength as it nears its next earnings release. In that report, analysts expect Petrobras to post earnings of $0.76 per share. This would mark year-over-year growth of 2433.33%. Our most recent consensus estimate is calling for quarterly revenue of $27.02 billion, up 72.12% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.70 per share and revenue of $97.18 billion, which would represent changes of +55.46% and +15.74%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Petrobras. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 17.35% higher. Petrobras currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Petrobras is holding a Forward P/E ratio of 3.84. This valuation marks a discount compared to its industry's average Forward P/E of 4.82.

Also, we should mention that PBR has a PEG ratio of 0.11. 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. Oil and Gas - Integrated - Emerging Markets stocks are, on average, holding a PEG ratio of 0.14 based on yesterday's closing prices.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 9, putting it in the top 4% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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