Petrobras (PBR) Beats Stock Market Upswing: What Investors Need to Know

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.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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

This article originally published on Zacks Investment Research (zacks.com).

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