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The latest trading session saw Petrobras (PBR) ending at $11.42, denoting a -0.44% adjustment from its last day's close. This change lagged the S&P 500's 2.03% gain on the day. Elsewhere, the Dow saw an upswing of 1.23%, while the tech-heavy Nasdaq appreciated by 2.74%.
Prior to today's trading, shares of the oil and gas company had lost 19.96% over the past month. This has lagged the Oils-Energy sector's loss of 10.82% and the S&P 500's loss of 5.07% in that time.
Investors will be eagerly watching for the performance of Petrobras in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.07, marking a 42.67% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $20.65 billion, showing a 13.12% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.01 per share and revenue of $87.12 billion, indicating changes of +1.01% and -4.7%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Petrobras. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.91% decrease. As of now, Petrobras holds a Zacks Rank of #3 (Hold).
In terms of valuation, Petrobras is currently trading at a Forward P/E ratio of 3.81. This expresses a discount compared to the average Forward P/E of 8.42 of its industry.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 161, this industry ranks in the bottom 36% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.