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Petrobras (PBR) Surges 5.3%: Is This an Indication of Further Gains?

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Petrobras (PBR - Free Report) shares rallied 5.3% in the last trading session to close at $13.51. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.5% gain over the past four weeks.

Petrobras’ shares moved higher after the company announced a $560 million contract to build LPG carriers, barges and pushboats at Brazilian shipyards, expanding Transpetro’s fleet and reducing dependence on chartered vessels. The deal is also expected to create around 9,000 jobs, supporting the local economy. Investor sentiment was further lifted by Petrobras’ 2025 production update, which showed record oil output that exceeded its targets. Adding to the momentum, multiple analysts raised their ratings and price targets on the stock, helping drive the sharp move higher.

This oil and gas company is expected to post quarterly earnings of $0.52 per share in its upcoming report, which represents a year-over-year change of +6.1%. Revenues are expected to be $22.43 billion, up 7.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Petrobras, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PBR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Petrobras belongs to the Zacks Oil and Gas - Integrated - International industry. Another stock from the same industry, Golar LNG (GLNG - Free Report) , closed the last trading session 3.7% higher at $40.29. Over the past month, GLNG has returned 4.3%.

Golar LNG's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.38. Compared to the company's year-ago EPS, this represents a change of +26.7%. Golar LNG currently boasts a Zacks Rank of #3 (Hold).


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