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

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Petrobras (PBR - Free Report) closed at $13.98 in the latest trading session, marking a +1.6% move from the prior day. This move outpaced the S&P 500's daily gain of 0.93%. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 1.71%.

Coming into today, shares of the oil and gas company had gained 16.02% in the past month. In that same time, the Oils-Energy sector gained 2.37%, while the S&P 500 gained 4.61%.

Wall Street will be looking for positivity from Petrobras as it approaches its next earnings report date. The company is expected to report EPS of $0.77, down 44.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $27.25 billion, down 21.48% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.24 per share and revenue of $109.68 billion, which would represent changes of -38.75% and -11.89%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Petrobras. Recent revisions tend to reflect the latest near-term business trends. 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. 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, 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 2.11% lower. Petrobras currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Petrobras currently has a Forward P/E ratio of 4.24. This valuation marks a discount compared to its industry's average Forward P/E of 4.45.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow PBR in the coming trading sessions, be sure to utilize Zacks.com.


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