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

Petrobras (PBR) closed at $10.99 in the latest trading session, marking a +0.83% move from the prior day.

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This story originally appeared on Zacks

Petrobras (PBR) closed at $10.99 in the latest trading session, marking a +0.83% move from the prior day. This change outpaced the S&P 500's 0.3% loss on the day. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.33%.

- Zacks

Heading into today, shares of the oil and gas company had gained 2.44% over the past month, outpacing the Oils-Energy sector's gain of 1.34% and lagging the S&P 500's gain of 3.11% in that time.

Wall Street will be looking for positivity from Petrobras as it approaches its next earnings report date. On that day, Petrobras is projected to report earnings of $0.78 per share, which would represent a year-over-year decline of 4.88%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.44 billion, up 75.69% from the year-ago period.

PBR's full-year Zacks Consensus Estimates are calling for earnings of $2.93 per share and revenue of $83.76 billion. These results would represent year-over-year changes of +581.4% and +56.02%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant within the past month. Petrobras is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Petrobras has a Forward P/E ratio of 3.72 right now. For comparison, its industry has an average Forward P/E of 4.95, which means Petrobras is trading at a discount to the group.

Meanwhile, PBR's PEG ratio is currently 0.16. 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. The Oil and Gas - Integrated - Emerging Markets was holding an average PEG ratio of 0.16 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 69, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.



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