Petrobras (PBR) Stock Slides as Market Rises: Facts to Know Before You Trade

In this article:

In the latest market close, Petrobras (PBR) reached $14.40, with a -0.14% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.47%. On the other hand, the Dow registered a gain of 0.79%, and the technology-centric Nasdaq increased by 0.28%.

Heading into today, shares of the oil and gas company had lost 2.17% over the past month, outpacing the Oils-Energy sector's loss of 6.86% and lagging the S&P 500's gain of 3.48% in that time.

Market participants will be closely following the financial results of Petrobras in its upcoming release. The company plans to announce its earnings on November 7, 2024. The company is forecasted to report an EPS of $0.92, showcasing a 6.98% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $23.16 billion, indicating a 9.38% downward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.40 per share and a revenue of $94.03 billion, representing changes of -42.58% and -8.18%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Petrobras. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 23.43% lower within the past month. Petrobras currently has a Zacks Rank of #4 (Sell).

Looking at valuation, Petrobras is presently trading at a Forward P/E ratio of 6. This expresses a premium compared to the average Forward P/E of 5.05 of its industry.

We can also see that PBR currently has a PEG ratio of 0.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Oil and Gas - Integrated - Emerging Markets industry had an average PEG ratio of 0.22.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 212, placing it within the bottom 16% of over 250 industries.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Advertisement