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

Petrobras (PBR) closed at $13.67 in the latest trading session, marking a -1.65% move from the prior day. This change lagged the S&P 500's 3.06% gain on the day. Elsewhere, the Dow gained 2.8%, while the tech-heavy Nasdaq added 0.18%.

Heading into today, shares of the oil and gas company had lost 3.74% over the past month, outpacing the Oils-Energy sector's loss of 4.37% and the S&P 500's loss of 6.15% 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 $1.14 per share, which would represent year-over-year growth of 119.23%. Meanwhile, our latest consensus estimate is calling for revenue of $32.75 billion, up 40.84% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.43 per share and revenue of $122.37 billion, which would represent changes of +128.15% and +45.73%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Petrobras. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Petrobras currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Petrobras is holding a Forward P/E ratio of 2.56. This represents a no noticeable deviation compared to its industry's average Forward P/E of 2.56.

Investors should also note that PBR has a PEG ratio of 1.36 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 industry currently had an average PEG ratio of 1.36 as of yesterday's close.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 101, putting it in the top 41% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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