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Petrobras (PBR) Stock Slides as Market Rises: Facts to Know Before You Trade

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Petrobras (PBR - Free Report) closed the most recent trading day at $14.64, moving -1.81% from the previous trading session. This change lagged the S&P 500's daily gain of 0.71%. On the other hand, the Dow registered a gain of 1.03%, and the technology-centric Nasdaq increased by 0.6%.

Shares of the oil and gas company witnessed a gain of 3.33% over the previous month, beating the performance of the Oils-Energy sector with its loss of 3.93% and underperforming the S&P 500's gain of 6.41%.

Market participants will be closely following the financial results of Petrobras in its upcoming release. The company plans to announce its earnings on November 7, 2024. In that report, analysts expect Petrobras to post earnings of $0.92 per share. This would mark year-over-year growth of 6.98%. Meanwhile, our latest consensus estimate is calling for revenue of $23.16 billion, down 9.38% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $2.36 per share and a revenue of $94.03 billion, demonstrating changes of -43.54% and -8.18%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Petrobras. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 24.68% downward. Right now, Petrobras possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Petrobras is holding a Forward P/E ratio of 6.31. This expresses a premium compared to the average Forward P/E of 5.26 of its industry.

It is also worth noting that PBR currently has a PEG ratio of 0.23. 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. As the market closed yesterday, the Oil and Gas - Integrated - Emerging Markets industry was having an average PEG ratio of 0.23.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 241, positioning it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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