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Petrobras (PBR) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest trading session, Petrobras (PBR - Free Report) closed at $11.96, marking a -1.97% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.28%. Meanwhile, the Dow experienced a drop of 0.52%, and the technology-dominated Nasdaq saw a decrease of 0.08%.

Prior to today's trading, shares of the oil and gas company had lost 4.39% lagged the Oils-Energy sector's gain of 3.56% and the S&P 500's gain of 4.03%.

The investment community will be closely monitoring the performance of Petrobras in its forthcoming earnings report. On that day, Petrobras is projected to report earnings of $0.61 per share, which would represent a year-over-year decline of 34.41%. Alongside, our most recent consensus estimate is anticipating revenue of $21.73 billion, indicating a 7.01% downward movement from the same quarter last year.

PBR's full-year Zacks Consensus Estimates are calling for earnings of $2.86 per share and revenue of $86.03 billion. These results would represent year-over-year changes of -4.03% and -5.9%, respectively.

Any recent changes to analyst estimates for Petrobras should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Petrobras is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Petrobras is presently being traded at a Forward P/E ratio of 4.27. Its industry sports an average Forward P/E of 10.75, so one might conclude that Petrobras is trading at a discount comparatively.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 164, this industry ranks in the bottom 34% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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