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Petrobras (PBR) Dips More Than Broader Markets: What You Should Know

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Petrobras (PBR - Free Report) closed the most recent trading day at $14.91, moving -1.58% from the previous trading session. This change lagged the S&P 500's daily loss of 1.26%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 0.44%.

Prior to today's trading, shares of the oil and gas company had gained 13.4% over the past month. This has outpaced the Oils-Energy sector's gain of 5.66% and the S&P 500's gain of 6.07% in that time.

Investors will be hoping for strength from Petrobras as it approaches its next earnings release. The company is expected to report EPS of $0.76, up 2433.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.02 billion, up 72.12% from the year-ago period.

PBR's full-year Zacks Consensus Estimates are calling for earnings of $3.70 per share and revenue of $97.18 billion. These results would represent year-over-year changes of +55.46% and +15.74%, respectively.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate has moved 17.6% higher. Petrobras is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that Petrobras has a Forward P/E ratio of 4.1 right now. Its industry sports an average Forward P/E of 5.13, so we one might conclude that Petrobras is trading at a discount comparatively.

Investors should also note that PBR has a PEG ratio of 0.12 right now. 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 was holding an average PEG ratio of 0.12 at yesterday's closing price.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 5, putting it in the top 2% 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.

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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