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Petrobras (PBR) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Petrobras (PBR - Free Report) closed at $9.95, marking a -1% move from the previous day. This change lagged the S&P 500's daily loss of 0.11%.

Heading into today, shares of the oil and gas company had lost 3.27% over the past month, lagging the Oils-Energy sector's gain of 15.65% and the S&P 500's gain of 4.61% in that time.

PBR will be looking to display strength as it nears its next earnings release. On that day, PBR is projected to report earnings of $0.61 per share, which would represent year-over-year growth of 577.78%. Meanwhile, our latest consensus estimate is calling for revenue of $22.25 billion, up 69.21% from the prior-year quarter.

PBR's full-year Zacks Consensus Estimates are calling for earnings of $2.33 per share and revenue of $79.71 billion. These results would represent year-over-year changes of +441.86% and +48.48%, respectively.

Investors should also note any recent changes to analyst estimates for PBR. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. PBR is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, PBR is currently trading at a Forward P/E ratio of 4.31. This represents a discount compared to its industry's average Forward P/E of 5.76.

Investors should also note that PBR has a PEG ratio of 0.21 right now. 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. PBR's industry had an average PEG ratio of 0.21 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 16, which puts it in the top 7% 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.

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


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