Why the Market Dipped but Petrobras Gained Today

Petrobras PBR closed the most recent trading day at $15.19, moving +0.33% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.88%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 1.95%.

The oil and gas company's stock has climbed by 6.85% in the past month, exceeding the Oils-Energy sector's loss of 12.58% and the S&P 500's gain of 5.11%.

Analysts and investors alike will be keeping a close eye on the performance of Petrobras in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.86, marking a 4.44% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $24.66 billion, up 7.31% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $3.46 per share and a revenue of $98.78 billion, demonstrating changes of -17.22% and -3.54%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Petrobras. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.1% lower within the past month. At present, Petrobras boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Petrobras is at present trading with a Forward P/E ratio of 4.37. This signifies a discount in comparison to the average Forward P/E of 4.38 for its industry.

It's also important to note that PBR currently trades at a PEG ratio of 0.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Integrated - Emerging Markets industry currently had an average PEG ratio of 0.59 as of yesterday's close.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 229, this industry ranks in the bottom 10% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

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