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Petrobras (PBR) Stock Sinks As Market Gains: What You Should Know

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Petrobras (PBR - Free Report) closed the most recent trading day at $10.68, moving -1.57% from the previous trading session. This change lagged the S&P 500's 1.75% gain on the day. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 7.84%.

Coming into today, shares of the oil and gas company had lost 7.19% in the past month. In that same time, the Oils-Energy sector lost 3.11%, while the S&P 500 lost 4.4%.

Investors will be hoping for strength from Petrobras as it approaches its next earnings release. The company is expected to report EPS of $1.08, up 66.15% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.89 billion, up 32.69% from the year-ago period.

PBR's full-year Zacks Consensus Estimates are calling for earnings of $5.55 per share and revenue of $125.25 billion. These results would represent year-over-year changes of +133.19% and +49.16%, respectively.

Any recent changes to analyst estimates for Petrobras should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Petrobras is currently a Zacks Rank #3 (Hold).

Digging into valuation, Petrobras currently has a Forward P/E ratio of 1.96. Its industry sports an average Forward P/E of 2.29, so we one might conclude that Petrobras is trading at a discount comparatively.

Also, we should mention that PBR has a PEG ratio of 1.04. 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. PBR's industry had an average PEG ratio of 0.55 as of yesterday's close.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 232, which puts it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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


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