In the latest trading session, Petrobras (PBR) closed at $12.35, marking a +0.9% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 1.54%.
Heading into today, shares of the oil and gas company had gained 13.12% over the past month, outpacing the Oils-Energy sector's gain of 1.56% and the S&P 500's gain of 4.14% in that time.
Wall Street will be looking for positivity from Petrobras as it approaches its next earnings report date. On that day, Petrobras is projected to report earnings of $0.82 per share, which would represent a year-over-year decline of 41.01%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.25 billion, down 21.48% from the year-ago period.
PBR's full-year Zacks Consensus Estimates are calling for earnings of $3.38 per share and revenue of $112.54 billion. These results would represent year-over-year changes of -36.11% and -9.59%, respectively.
It is also important to note the recent changes to analyst estimates for Petrobras. These recent revisions tend to reflect the evolving nature of short-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. 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 0.4% higher. Petrobras is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Petrobras has a Forward P/E ratio of 3.62 right now. Its industry sports an average Forward P/E of 3.99, so we one might conclude that Petrobras is trading at a discount comparatively.
The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 122, putting it in the top 49% 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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