Back to top

Image: Bigstock

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

Read MoreHide Full Article

Petrobras (PBR - Free Report) closed the most recent trading day at $14.99, moving +1.01% from the previous trading session. This change outpaced the S&P 500's 0.27% loss on the day. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq added 0.14%.

Coming into today, shares of the oil and gas company had gained 5.62% in the past month. In that same time, the Oils-Energy sector gained 4.61%, while the S&P 500 lost 2.86%.

Investors will be hoping for strength from Petrobras as it approaches its next earnings release. The company is expected to report EPS of $0.73, down 45.93% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $23.66 billion, down 26.99% from the prior-year quarter.

PBR's full-year Zacks Consensus Estimates are calling for earnings of $3.59 per share and revenue of $97.18 billion. These results would represent year-over-year changes of -32.14% and -21.93%, respectively.

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. 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. 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 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. The Zacks Consensus EPS estimate has moved 2.11% higher within the past month. Petrobras is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Petrobras's current valuation metrics, including its Forward P/E ratio of 4.14. This represents a discount compared to its industry's average Forward P/E of 4.77.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 12% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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