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Petrobras (PBR) Rises Yet Lags Behind Market: Some Facts Worth Knowing

In the latest trading session, Petrobras (PBR) closed at $16.96, marking a +0.12% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.2%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.59%.

Coming into today, shares of the oil and gas company had gained 13.39% in the past month. In that same time, the Oils-Energy sector gained 3.58%, while the S&P 500 lost 4.16%.

Market participants will be closely following the financial results of Petrobras in its upcoming release. The company is predicted to post an EPS of $0.88, indicating a 20.72% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $25.56 billion, indicating a 4.51% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.51 per share and revenue of $98.76 billion, indicating changes of -16.03% and -3.56%, respectively, compared to the previous year.


Investors should also take note of any recent adjustments to analyst estimates for Petrobras. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.85% higher. Currently, Petrobras is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Petrobras is currently being traded at a Forward P/E ratio of 4.83. This expresses a premium compared to the average Forward P/E of 4.57 of its industry.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 94, this industry ranks in the top 38% of all industries, numbering over 250.

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.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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