Petrobras (PBR) ended the recent trading session at $19.51, demonstrating a +1.77% change from the preceding day’s closing price. The stock exceeded the S&P 500, which registered a gain of 0.25% for the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq appreciated by 0.47%.
Prior to today’s trading, shares of the oil and gas company had gained 26.2% outpaced the Oils-Energy sector’s gain of 7.67% and the S&P 500’s loss of 1.88%.
The upcoming earnings release of Petrobras will be of great interest to investors. The company’s upcoming EPS is projected at $0.88, signifying a 41.94% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $22.18 billion, indicating a 5.27% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.97 per share and a revenue of $91.22 billion, signifying shifts of +6.07% and +2.27%, respectively, from the last year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 33.7% higher. Petrobras presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Petrobras is holding a Forward P/E ratio of 6.45. This represents a discount compared to its industry average Forward P/E of 11.87.
It’s also important to note that PBR currently trades at a PEG ratio of 0.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Oil and Gas – Integrated – International stocks are, on average, holding a PEG ratio of 1.13 based on yesterday’s closing prices.
The Oil and Gas – Integrated – International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 49, placing it within the top 20% of over 250 industries.
