Back to top

Image: Bigstock

Why Petrobras (PBR) Dipped More Than Broader Market Today

Read MoreHide Full Article

In the latest trading session, Petrobras (PBR - Free Report) closed at $14.06, marking a -0.85% move from the previous day. This move lagged the S&P 500's daily loss of 0.5%. Meanwhile, the Dow experienced a rise of 0.5%, and the technology-dominated Nasdaq saw a decrease of 1.28%.

Heading into today, shares of the oil and gas company had lost 2.21% over the past month, outpacing the Oils-Energy sector's loss of 10.92% and lagging the S&P 500's gain of 0.1% in that time.

The investment community will be closely monitoring the performance of Petrobras in its forthcoming earnings report. The company is scheduled to release its earnings on August 8, 2024. In that report, analysts expect Petrobras to post earnings of $0.65 per share. This would mark a year-over-year decline of 27.78%. Alongside, our most recent consensus estimate is anticipating revenue of $24.05 billion, indicating a 4.65% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.43 per share and revenue of $97.77 billion, indicating changes of -17.94% and -4.53%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Petrobras. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.96% downward. Petrobras presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Petrobras is at present trading with a Forward P/E ratio of 4.13. This represents a discount compared to its industry's average Forward P/E of 4.26.

Meanwhile, PBR's PEG ratio is currently 0.15. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Oil and Gas - Integrated - Emerging Markets stocks are, on average, holding a PEG ratio of 0.15 based on yesterday's closing prices.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 241, which puts it in the bottom 5% 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.


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