Stock Market

Petrobras (PBR) Outpaces Stock Market Gains: What You Should Know – September 14, 2022

Petrobras (PBR Free Report) closed at $13.42 in the latest trading session, marking a +1.36% move from the prior day. The stock outpaced the S&P 500’s daily gain of 0.34%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq lost 0.05%.

Heading into today, shares of the oil and gas company had lost 3.57% over the past month, lagging the Oils-Energy sector’s loss of 0.08% and outpacing the S&P 500’s loss of 7.95% 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, the Zacks Consensus Estimate for revenue is projecting net sales of $32.75 billion, up 40.84% from the year-ago period.

PBR’s full-year Zacks Consensus Estimates are calling for earnings of $5.43 per share and revenue of $122.37 billion. These results would represent year-over-year changes of +128.15% and +45.73%, respectively.

Any recent changes to analyst estimates for Petrobras should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Petrobras is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Petrobras currently has a Forward P/E ratio of 2.44. This represents a discount compared to its industry’s average Forward P/E of 2.83.

Also, we should mention that PBR has a PEG ratio of 1.3. 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 was holding an average PEG ratio of 1.3 at yesterday’s closing price.

The Oil and Gas – Integrated – Emerging Markets industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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