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

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In the latest trading session, Petrobras (PBR - Free Report) closed at $14.67, marking a +1.24% move from the previous day. This change outpaced the S&P 500's 0.63% loss on the day. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.34%.

Coming into today, shares of the oil and gas company had lost 1.29% in the past month. In that same time, the Oils-Energy sector gained 8.16%, while the S&P 500 gained 6.02%.

Investors will be hoping for strength from Petrobras as it approaches its next earnings release. On that day, Petrobras is projected to report earnings of $0.76 per share, which would represent year-over-year growth of 2433.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.02 billion, up 72.12% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.70 per share and revenue of $97.18 billion, which would represent changes of +55.46% and +15.74%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Petrobras. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 17.6% higher within the past month. Petrobras is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, Petrobras is holding a Forward P/E ratio of 3.92. For comparison, its industry has an average Forward P/E of 4.89, which means Petrobras is trading at a discount to the group.

Meanwhile, PBR's PEG ratio is currently 0.11. 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 was holding an average PEG ratio of 0.14 at yesterday's closing price.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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