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

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In the latest trading session, Petrobras (PBR - Free Report) closed at $10.54, marking a -1.13% move from the previous day. This change lagged the S&P 500's 1.02% gain on the day.

Coming into today, shares of the oil and gas company had lost 12.34% in the past month. In that same time, the Oils-Energy sector lost 8.32%, while the S&P 500 gained 3.01%.

Wall Street will be looking for positivity from PBR as it approaches its next earnings report date. On that day, PBR is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 321.05%. Meanwhile, our latest consensus estimate is calling for revenue of $18.15 billion, up 91.43% from the prior-year quarter.

PBR's full-year Zacks Consensus Estimates are calling for earnings of $1.81 per share and revenue of $72.73 billion. These results would represent year-over-year changes of +320.93% and +35.47%, respectively.

Any recent changes to analyst estimates for PBR 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 5.23% higher. PBR is currently a Zacks Rank #1 (Strong Buy).

Investors should also note PBR's current valuation metrics, including its Forward P/E ratio of 5.89. This represents a discount compared to its industry's average Forward P/E of 6.12.

It is also worth noting that PBR currently has a PEG ratio of 0.29. 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. The Oil and Gas - Integrated - Emerging Markets industry currently had an average PEG ratio of 0.29 as of yesterday's close.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 19, putting it in the top 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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