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Petrobras (PBR) Stock Declines While Market Improves: Some Information for Investors

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Petrobras (PBR - Free Report) ended the recent trading session at $11.74, demonstrating a -1.51% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.64%. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.69%.

Shares of the oil and gas company have depreciated by 1.73% over the course of the past month, underperforming the Oils-Energy sector's gain of 1.8%, and the S&P 500's gain of 0.55%.

The investment community will be paying close attention to the earnings performance of Petrobras in its upcoming release. The company is predicted to post an EPS of $0.52, indicating a 6.12% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $22.43 billion, indicating a 7.78% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.22 per share and revenue of $87.42 billion, indicating changes of +8.05% and 0%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Petrobras. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 17.05% lower. Right now, Petrobras possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Petrobras is currently exchanging hands at a Forward P/E ratio of 5.53. This represents a discount compared to its industry average Forward P/E of 10.02.

One should further note that PBR currently holds a PEG ratio of 0.25. 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. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 2.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 219, positioning it in the bottom 11% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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