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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Petrobras (PBR - Free Report) Headquartered in Rio de Janeiro, Petroleo Brasileiro S.A., or Petrobras S.A., is the largest integrated energy firm in Brazil and one of the largest in Latin America. The company’s activities include: exploration, exploitation and production of oil from reservoir wells, shale and other rocks, as well as refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities. The company operates in three main segments:

PBR is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Oils-Energy stock. PBR has a Momentum Style Score of A, and shares are up 22.9% over the past four weeks.

For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.18 to $5.99 per share. PBR boasts an average earnings surprise of +3%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PBR should be on investors' short list.

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Key Takeaways Petrobras will receive $859 million from its BM-S-11A partners, with settlement expected by November 2026.The agreements follow ANP-approved ownership revisions for the Berbigao and Sururu reservoirs.PBR holds 45.394% of Sururu and 62.913% of Berbigao, with partners reconciling costs, volumes and royalties. Petrobras S.A. (PBR - Free Report) , a Brazilian state-owned energy firm, announced the signing of cost and volume balancing agreements with its partners, Shell plc (SHEL - Free Report) , TotalEnergies SE (TTE - Free Report) and Petrogal S.A. in the BM-S-11A consortium. This agreement covers the Berbigao and Sururu shared reservoirs and associated assets in the prolific Santos Basin, offshore Brazil. Under this agreement, PBR will receive a net payment of approximately $859 million from its partners, with settlement expected by November 2026.

The agreements come after the execution of production individualization agreements (AIPs) for the Berbigao and Sururu reservoirs. Production Individualization Agreements are required when a hydrocarbon reservoir extends across areas with different ownership interests. The AIPs establish how the reservoir will be jointly developed and how resources will be allocated among multiple partners. The agreement outlined the revised ownership structure for the Berbigao and Sururu reservoirs, which was authorized by Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP). Following the revised ownership structure, the companies will reconcile their respective operating costs, production volumes and royalties.

Under the revised ownership arrangement, Petrobras has a 45.394% interest in the Sururu shared reservoir, while Shell, TotalEnergies and Petrogal hold 23.742%, 21.367% and 9.497%, respectively. In the Berbigao shared reservoir, Petrobras has a 62.913% interest. SHEL and TTE hold 16.125% and 14.512%, respectively, while Petrogal has the remaining 6.450%. The Sururu and Berbigao shared reservoirs extend across the BM-S-11A concession, operated by Petrobras and the Transfer of Rights agreement, in which the Brazilian energy company holds a 100% interest. The cost and volume balancing agreements apply to the period from Sept. 15, 2000, through April 30, 2026, just before the production individualization agreements were implemented.

About the Partners

Shell is one of the oil and gas supermajors headquartered in London, with operations spread across the globe. SHEL’s long-term strategy revolves around liquefied natural gas, considering the secular shift to cleaner-burning fuel for power generation worldwide, particularly in the Asia-Pacific region. Shell continues investing in projects that can support long-term production growth and reserve replacement so that the company can sustain earnings growth in the long run.

TotalEnergies is one of the largest integrated energy firms, with operations spread across multiple geographies. Headquartered in France, the company is increasing energy production from LNG and clean electricity. In fact, the company had 37.4 gigawatts of gross installed renewable power capacity by the end of the June quarter. The company is also a major upstream player with a strong production growth profile.

Petrogal is a subsidiary of Galp Energia (GLPEY - Free Report) . Galp Energia is a Portuguese energy company engaged in exploration and production activities. It refines and markets oil products and gas, as well as engages in marketing and sales activities.

Published in energy oil-energy

In the latest trading session, Petrobras (PBR - Free Report) closed at $25.94, marking a +1.73% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.11%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 1.88%.

Heading into today, shares of the oil and gas company had gained 17.13% over the past month, outpacing the Oils-Energy sector's gain of 4.62% and the S&P 500's gain of 2.06%.

The investment community will be closely monitoring the performance of Petrobras in its forthcoming earnings report. The company is scheduled to release its earnings on November 10, 2026. The company's earnings per share (EPS) are projected to be $1.21, reflecting a 47.56% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.84 billion, up 35.62% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $4.81 per share and a revenue of $120.93 billion, demonstrating changes of +71.79% and +35.58%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Petrobras. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained stagnant within the past month. Petrobras is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Petrobras is currently being traded at a Forward P/E ratio of 5.3. This signifies a discount in comparison to the average Forward P/E of 8.08 for its industry.

One should further note that PBR currently holds a PEG ratio of 1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 0.65.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 20, putting it in the top 9% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Petrobras (PBR - Free Report) .

Petrobras currently has an average brokerage recommendation (ABR) of 1.83, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. An ABR of 1.83 approximates between Strong Buy and Buy.

Of the nine recommendations that derive the current ABR, five are Strong Buy, representing 55.6% of all recommendations.

Brokerage Recommendation Trends for PBR

Check price target & stock forecast for Petrobras here>>>

While the ABR calls for buying Petrobras, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Should You Invest in PBR?In terms of earnings estimate revisions for Petrobras, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.81.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Petrobras. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Petrobras.

Petrobras (PBR - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this oil and gas company have returned +14.6%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Oil and Gas - Integrated - International industry, which Petrobras falls in, has gained 1.9%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Petrobras is expected to post earnings of $1.21 per share for the current quarter, representing a year-over-year change of +47.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +27.4%.

The consensus earnings estimate of $4.81 for the current fiscal year indicates a year-over-year change of +71.8%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $3.86 indicates a change of -19.8% from what Petrobras is expected to report a year ago. Over the past month, the estimate has changed +13.2%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Petrobras.

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Petrobras, the consensus sales estimate for the current quarter of $31.84 billion indicates a year-over-year change of +35.6%. For the current and next fiscal years, $120.93 billion and $114.65 billion estimates indicate +35.6% and -5.2% changes, respectively.

Last Reported Results and Surprise HistoryPetrobras reported revenues of $33.61 billion in the last reported quarter, representing a year-over-year change of +59.8%. EPS of $1.72 for the same period compares with $0.64 a year ago.

Compared to the Zacks Consensus Estimate of $30.83 billion, the reported revenues represent a surprise of +9%. The EPS surprise was +13.16%.

Over the last four quarters, Petrobras surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Petrobras is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Petrobras. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

In the latest close session, Petrobras (PBR - Free Report) was down 1.33% at $23.82. This change lagged the S&P 500's 0.58% gain on the day. Elsewhere, the Dow saw an upswing of 0.49%, while the tech-heavy Nasdaq appreciated by 0.45%.

Shares of the oil and gas company witnessed a gain of 19.98% over the previous month, beating the performance of the Oils-Energy sector with its loss of 0.73%, and the S&P 500's gain of 0.84%.

Analysts and investors alike will be keeping a close eye on the performance of Petrobras in its upcoming earnings disclosure. The company's earnings report is set to go public on November 10, 2026. In that report, analysts expect Petrobras to post earnings of $1.21 per share. This would mark year-over-year growth of 47.56%. In the meantime, our current consensus estimate forecasts the revenue to be $31.84 billion, indicating a 35.62% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.81 per share and revenue of $120.93 billion. These totals would mark changes of +71.79% and +35.58%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Petrobras. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, the Zacks Consensus EPS estimate has remained steady. Petrobras is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Petrobras has a Forward P/E ratio of 5.02 right now. This represents a discount compared to its industry average Forward P/E of 8.31.

It is also worth noting that PBR currently has a PEG ratio of 0.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Integrated - International was holding an average PEG ratio of 0.6 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 55, placing it within the top 23% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Key Takeaways PBR and EC completed a two-and-a-half-year campaign with five wells and $1 billion invested.Sandia-1 and Copoazu-1 discoveries reinforce the Colombian Caribbean's gas-bearing potential.Petrobras and Ecopetrol will focus on appraisal, resource assessment and development planning. Petrobras (PBR - Free Report) is strengthening its position in Colombia’s offshore natural gas sector with the completion of a large-scale exploration campaign in the deepwater Caribbean. Recently, PBR and Ecopetrol (EC - Free Report) declared the completion of the two-and-a-half-year program, which involved drilling five exploration wells and approximately $1 billion in investment. Petrobras served as operator with a 44.4% interest, while Ecopetrol, a Colombia-based integrated oil and gas company, held the remaining 55.6% stake in the GUA-OFF-0 contract with the country’s National Hydrocarbons Agency.

The campaign is important for Petrobras because it extends the exploration portfolio beyond the core Brazilian operations while creating exposure to a potentially significant natural gas province. More importantly, the program has moved beyond pure exploration activity, producing discoveries that could support future resource development and strengthen Colombia’s domestic gas supply.

Successful Exploration Campaign Expands Gas PotentialThe campaign covered a demanding offshore operating environment and required substantial technical and logistical coordination. Petrobras led the planning and execution of activities spanning geoscience, engineering, maritime operations, aviation, port services and oceanographic work.

According to Ecopetrol, the project required more than 1,000 helicopter flights and 1,400 hours of flight time to move more than 16,000 passengers. Maritime operations transported more than 147,600 tons of cargo and 45 million liters of fuel, while vessels covered more than 22,000 nautical miles.

For investors, the scale of the campaign demonstrates Petrobras’ ability to manage complex deepwater exploration programs while maintaining operational discipline. The companies reported no accidents or operational incidents during the two-and-a-half-year campaign, supporting the partners’ execution track record in a technically challenging region.

Discoveries Improve the Investment CaseThe exploration effort has already produced encouraging results. On Aug. 3, 2026, Petrobras and Ecopetrol announced a natural gas discovery at the Sandia-1 exploratory well in the GUA-OFF-0 block. The well was drilled in about 1,285 meters of water and is located close to the Sirius and Copoazú discoveries, reinforcing the geological potential of the broader area.

The Sandia discovery followed the Copoazú-1 gas discovery announced in March 2026. Copoazú-1 was drilled in approximately 964 meters of water and further expanded the companies’ understanding of the gas-bearing system in the Colombian Caribbean.

These developments are strategically relevant for Petrobras. Exploration success can help replenish oil and gas resources over time and create additional opportunities to participate in future production growth. While discoveries alone do not immediately translate into cash flow, successful appraisal, development and commercialization could enhance the long-term value of the company’s Colombian portfolio.

Gas Demand Provides a Strategic TailwindThe Colombian Caribbean is becoming increasingly important as the country seeks to develop domestic natural gas resources. Ecopetrol has highlighted energy security and greater gas availability as key objectives of its offshore exploration strategy.

For Petrobras, the opportunity fits with its broader approach of exploring new frontiers through partnerships while leveraging the deepwater capabilities. The company has previously identified offshore Colombia as a long-term exploration focus and has a track record in the region, including an earlier gas discovery in 2014.

The partnership structure also distributes exploration exposure between Petrobras and Ecopetrol. Petrobras contributes its offshore operating expertise, while Ecopetrol maintains the larger economic interest in the block. Such arrangements can help the companies share the capital requirements and technical risks associated with frontier exploration.

What Should Investors Watch Next?The completion of the campaign marks a transition from drilling activity toward evaluating the commercial potential of the discoveries. Further geological analysis, appraisal work and development planning will be important before investors can determine the size and economic value of the resources.

Investors should therefore focus on the pace of appraisal activity, resource assessments and any future development decisions linked to the Sirius, Copoazú and Sandia discoveries. The ability to convert exploration success into economically viable production will ultimately determine the financial impact on Petrobras.

Overall, the completion of the Colombia campaign represents a constructive development for Petrobras. The company has expanded its knowledge of a promising offshore gas basin, added another discovery to the region’s growing resource base and demonstrated the ability to execute a complex exploration program. With natural gas demand and energy security remaining key priorities in Colombia, the company’s offshore position could provide a longer-term growth opportunity alongside its broader exploration portfolio.

PBR's Zacks Rank & Key PicksCurrently, PBR has a Zacks Rank #3 (Hold), while EC sports a Zacks Rank #1 (Strong Buy).

Investors interested in the energy sector might consider some better-ranked stocks, such as Marathon Petroleum (MPC - Free Report) and Delek US Holdings (DK - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Marathon Petroleum is valued at $123.29 billion. The company is a leading U.S. independent refiner, marketer and transporter of petroleum products, with a strong refining footprint and an extensive midstream business. Marathon Petroleum benefits from its integrated operations, strategic refining assets and diversified earnings streams across the energy value chain.

Delek US Holdings is valued at $4.54 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of PBR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways Petrobras made a second oil discovery at the Morpho well in Brazil's Foz do Amazonas Basin.The deeper find expands Petrobras' understanding of petroleum systems and resource potential in the basin.Petrobras plans three more wells in FZA-M-59, with drilling expected to begin in early 2027. Petróleo Brasileiro S.A. - Petrobras (PBR - Free Report) has made a second oil discovery in the Morpho exploration well in Brazil’s Foz do Amazonas Basin, strengthening the exploration potential of the country’s Equatorial Margin. The discovery was made in block FZA-M-59, where Petrobras is the sole owner.

The Morpho well, also identified as 1-BRSA-1405-APS, is located in ultra-deep waters off Amapá state at a water depth of 2,886 meters. The latest oil-bearing interval was identified as drilling continued into deeper exploratory formations following the initial discovery announced in August 2026.

Deeper Drilling Expands Exploration InsightsThe latest discovery was confirmed through electrical logs, rock evidence and fluid samples collected during drilling. Petrobras said the additional find will help expand its understanding of the petroleum systems and resource potential of the Amazon River Mouth Sedimentary Basin.

The company is continuing to analyze the newly collected material through laboratory studies. The results will be integrated with the broader dataset obtained during the drilling program to support further evaluation of the identified formations. Petrobras also said analyses of the initial August discovery have confirmed the presence of good-quality, light oil.

The Morpho well is particularly significant because it represents the first major exploration well drilled in the most promising portion of Brazil’s Equatorial Margin in more than 15 years. The well is located about 175 kilometers off the coast of Amapá.

Three More Wells Planned in FZA-M-59The second discovery could raise expectations for Petrobras’ upcoming exploration campaign in the block. The company plans to drill three contingent wells in FZA-M-59, with operations expected to begin in early 2027.

Brazil’s environmental regulator, IBAMA, approved permits for the three wells in September. Petrobras plans to use the Constellation-operated Amaralina Star drillship for the campaign, although the rig will need to complete hull cleaning after finishing its current work off Brazil’s southeast coast.

The planned wells include the Morpho extension, located slightly northeast of the initial discovery, along with the Crotalus prospect in the northwest portion of the block and the Manga prospect southwest of the original Morpho well.

Petrobras Targets Equatorial Margin GrowthThe FZA-M-59 campaign forms part of Petrobras’ broader effort to explore Brazil’s Equatorial Margin, considered one of the country’s major remaining offshore oil and gas frontiers. Under its 2026-2030 strategic investment plan, Petrobras has allocated $2.5 billion for 15 exploration wells in the region. The company holds interests in 32 Equatorial Margin blocks spanning several offshore basins.

The region is viewed as having geological similarities to prolific petroleum areas off Guyana, Suriname and the west coast of Africa. Brazil’s Mines and Energy Ministry estimates that the country’s portion of the Equatorial Margin could contain as much as 6.2 billion barrels of recoverable reserves.

New Discovery Supports Long-Term Exploration StrategyThe second Morpho discovery provides Petrobras with additional geological information as it assesses the broader resource potential of the Foz do Amazonas Basin. The company said exploration of block FZA-M-59 is consistent with its long-term strategy of replenishing oil and gas reserves through new frontiers while supporting Brazil’s energy needs.

With drilling activities at Morpho still underway and additional wells planned for 2027, the latest discovery adds momentum to Petrobras’ efforts to unlock the resource potential of Brazil’s Equatorial Margin.

PBR’s Zacks Rank & Key PicksHeadquartered in Rio de Janeiro, Petrobras is the largest integrated energy firm in Brazil and one of the largest in Latin America. Currently, PBR has a Zacks Rank #3 (Hold).

Investors interested in the energy sector may consider some top-ranked stocks like Drilling Tools International Corporation (DTI - Free Report) , Forum Energy Technologies, Inc. (FET - Free Report) and Montauk Renewables, Inc. (MNTK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Drilling Tools International is a global oilfield services provider focused on supplying downhole tools used in horizontal and directional drilling. The Zacks Consensus Estimate for DTI’s 2026 revenues indicates 1.6% year-over-year growth.

Forum Energy is a global oilfield products company, serving the subsea, drilling, completion, production and infrastructure sectors of the oil and natural gas industry. The Zacks Consensus Estimate for FET’s 2026 earnings indicates 536.5% year-over-year growth.

Montauk Renewables is a fully integrated renewable energy company that specializes in the management, recovery and conversion of biogas into renewable energy. The Zacks Consensus Estimate for MNTK’s 2026 earnings indicates 1100% year-over-year growth.

Petroleo Brasileiro S.A.- Petrobras (NYSE: PBR - Get Free Report) and Marathon Petroleum (NYSE: MPC - Get Free Report) are both large-cap energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk. Institutional and Insider Ownership 76.8%

10.8K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PBR.A either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Bohdan Kucheriavyi is not a financial/investment advisor, broker, or dealer. He's solely sharing personal experience and opinion; therefore, all strategies, tips, suggestions, and recommendations shared are solely for informational purposes. There are risks associated with investing in securities. Investing in stocks, bonds, options, exchange-traded funds, mutual funds, and money market funds involves the risk of loss. Loss of principal is possible. Some high-risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including greater volatility and political, economic, and currency risks and differences in accounting methods. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Petrobras (PBR - Free Report) Headquartered in Rio de Janeiro, Petroleo Brasileiro S.A., or Petrobras S.A., is the largest integrated energy firm in Brazil and one of the largest in Latin America. The company’s activities include: exploration, exploitation and production of oil from reservoir wells, shale and other rocks, as well as refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities. The company operates in three main segments:

PBR is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Oils-Energy stock. PBR has a Momentum Style Score of B, and shares are up 1.6% over the past four weeks.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.17 to $4.81 per share. PBR also boasts an average earnings surprise of +3%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PBR should be on investors' short list.

US LNG exporter Cheniere Energy (LNG.N) said on Tuesday its marketing unit has entered ​into a long-term liquefied natural gas ‌sale and purchase agreement with Petrobras for 22 years.

Under the SPA, Brazil-based Petrobras has agreed to ​purchase approximately 0.8 million tonnes per ​annum of LNG from Cheniere Marketing on ⁠a free-on-board basis.

LNG developers use long-term ​contracts with creditworthy buyers to underpin financing ​and investment decisions for multibillion-dollar export projects.

The deal adds to Petrobras' efforts to reduce exposure to volatile ​spot LNG prices and secure supply flexibility ​for Brazil's gas and power market.

Cheniere CEO Jack Fusco ‌said ⁠the agreement provides "additional commercial support and fixed fee cash flow visibility to underpin further brownfield liquefaction capacity growth."

Earlier in February, the company ​entered a ​long-term LNG ⁠supply deal with Taiwan's CPC Corp, under which CPC will ​purchase up to 1.2 mtpa of ​the ⁠superchilled gas from Cheniere's subsidiary from 2026 through 2050.

Petrobras had said in March last year that ⁠it ​was in talks with ​US LNG suppliers for additional long-term import agreements.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Let's take a look at what these Wall Street heavyweights have to say about Petrobras (PBR - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Petrobras currently has an average brokerage recommendation (ABR) of 1.83, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. An ABR of 1.83 approximates between Strong Buy and Buy.

Of the nine recommendations that derive the current ABR, five are Strong Buy, representing 55.6% of all recommendations.

Brokerage Recommendation Trends for PBR

Check price target & stock forecast for Petrobras here>>>

While the ABR calls for buying Petrobras, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Should You Invest in PBR?Looking at the earnings estimate revisions for Petrobras, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.81.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Petrobras. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Petrobras.

Petrobras (PBR - Free Report) ended the recent trading session at $20.37, demonstrating a -2.26% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.51%. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 0.48%.

Shares of the oil and gas company witnessed a gain of 14.19% over the previous month, beating the performance of the Oils-Energy sector with its gain of 0.53%, and the S&P 500's gain of 0.74%.

Investors will be eagerly watching for the performance of Petrobras in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 10, 2026. The company's earnings per share (EPS) are projected to be $0.99, reflecting a 20.73% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $28.74 billion, indicating a 22.43% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.81 per share and a revenue of $114.38 billion, representing changes of +71.79% and +28.23%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Petrobras. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 past month, the Zacks Consensus EPS estimate remained stagnant. Petrobras is currently a Zacks Rank #3 (Hold).

In terms of valuation, Petrobras is presently being traded at a Forward P/E ratio of 4.33. This denotes a discount relative to the industry average Forward P/E of 8.78.

One should further note that PBR currently holds a PEG ratio of 0.82. 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 - International was holding an average PEG ratio of 0.64 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 33% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

To follow PBR in the coming trading sessions, be sure to utilize Zacks.com.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Petrobras (PBR - Free Report) Headquartered in Rio de Janeiro, Petroleo Brasileiro S.A., or Petrobras S.A., is the largest integrated energy firm in Brazil and one of the largest in Latin America. The company’s activities include: exploration, exploitation and production of oil from reservoir wells, shale and other rocks, as well as refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities. The company operates in three main segments:

PBR is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 4.33; value investors should take notice.

For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.17 to $4.81 per share. PBR boasts an average earnings surprise of +3%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, PBR should be on investors' short list.

Petrobras (PBR - Free Report) closed at $21.14 in the latest trading session, marking a +1.83% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.76% for the day. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 1.13%.

Heading into today, shares of the oil and gas company had gained 16.3% over the past month, outpacing the Oils-Energy sector's loss of 1.06% and the S&P 500's gain of 1.26%.

The upcoming earnings release of Petrobras will be of great interest to investors. The company's earnings report is expected on November 10, 2026. On that day, Petrobras is projected to report earnings of $0.99 per share, which would represent year-over-year growth of 20.73%. At the same time, our most recent consensus estimate is projecting a revenue of $28.74 billion, reflecting a 22.43% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.81 per share and a revenue of $114.38 billion, signifying shifts of +71.79% and +28.23%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Petrobras. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained stagnant. At present, Petrobras boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Petrobras has a Forward P/E ratio of 4.32 right now. This valuation marks a discount compared to its industry average Forward P/E of 8.6.

Meanwhile, PBR's PEG ratio is currently 0.81. 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 - International industry currently had an average PEG ratio of 0.62 as of yesterday's close.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.

A logo of Brazil's state-run Petrobras oil company is seen at its headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS/Sergio Moraes/File Photo Brazil's ​state-run oil firm ‌Petrobras (PETR3.SA) will have a drillship ​in Foz ​do Amazonas in January ⁠to start ​work on three ​new wells, Renata Baruzzi, director of ​engineering, technology ​and innovation, said on ‌Tuesday.

Petrobras ⁠was recently authorized by Brazilian environmental agency Ibama to ​start ​drilling. ⁠The new wells are ​key to ​determining ⁠whether Petrobras' oil discovery there ⁠is ​commercially viable.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Petrobras (PBR - Free Report) Headquartered in Rio de Janeiro, Petroleo Brasileiro S.A., or Petrobras S.A., is the largest integrated energy firm in Brazil and one of the largest in Latin America. The company’s activities include: exploration, exploitation and production of oil from reservoir wells, shale and other rocks, as well as refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities. The company operates in three main segments:

PBR is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. PBR has a Growth Style Score of B, forecasting year-over-year earnings growth of 71.8% for the current fiscal year.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.17 to $4.81 per share. PBR also boasts an average earnings surprise of +3%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PBR should be on investors' short list.

Brazilian state-run oil company Petrobras (PETR3.SA) ​said on Thursday it ‌had signed production-sharing contracts with Ivory Coast and its ​state energy firm ​Petroci for eight offshore exploratory ⁠blocks.

The deal gives Petrobras ​a 90% operating stake ​in each block, with Petroci retaining the remaining 10%.

The contracts ​are described as securing ​access to exploratory areas of "high potential" ‌on ⁠Africa's equatorial margin.

The move is aligned with Petrobras' strategy to replenish reserves ​through ​new ⁠frontier exploration in Brazil and abroad.

Petrobras ​CEO Magda Chambriard told Reuters ​last ⁠year that the oil major plans to make ⁠Africa ​its main exploratory ​region outside of Brazil.

A fresh rally in international diesel prices has widened ‌the gap between international prices and Brazil's state-owned oil company Petrobras to record levels, prompting independent importers to delay purchases, industry executives told Reuters.

Petrobras (PBR - Free Report) ended the recent trading session at $21.78, demonstrating a +2.96% change from the preceding day's closing price. This change outpaced the S&P 500's 0.45% loss on the day. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.78%.

Shares of the oil and gas company witnessed a gain of 15.89% over the previous month, beating the performance of the Oils-Energy sector with its gain of 2%, and the S&P 500's loss of 1.99%.

The investment community will be closely monitoring the performance of Petrobras in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.99, reflecting a 20.73% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $28.74 billion, indicating a 22.43% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.81 per share and a revenue of $114.38 billion, representing changes of +71.79% and +28.23%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Petrobras. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Petrobras holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Petrobras is currently exchanging hands at a Forward P/E ratio of 4.4. This indicates a discount in contrast to its industry's Forward P/E of 8.9.

One should further note that PBR currently holds a PEG ratio of 0.83. 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. By the end of yesterday's trading, the Oil and Gas - Integrated - International industry had an average PEG ratio of 0.68.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 29% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Petrobras remains my top pick for 2026, supported by sector-leading margins and operational efficiency. Geopolitical insulation and the Iran War have driven oil prices higher, boosting PBR's free cash flow outlook. PBR trades at a 40–56% discount to peers on EV/EBITDA and P/E, despite superior profitability and growth metrics.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Petrobras (PBR - Free Report) .

Petrobras currently has an average brokerage recommendation (ABR) of 1.83, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. An ABR of 1.83 approximates between Strong Buy and Buy.

Of the nine recommendations that derive the current ABR, five are Strong Buy, representing 55.6% of all recommendations.

Brokerage Recommendation Trends for PBR

Check price target & stock forecast for Petrobras here>>>

While the ABR calls for buying Petrobras, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is PBR a Good Investment?Looking at the earnings estimate revisions for Petrobras, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.81.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Petrobras. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Petrobras.

Key Takeaways Petrobras received approval to drill three wells in block FZA-M-59 near the Morpho discovery. The new wells aim to assess the Morpho reservoir's size, quality and continuity for future development. Regulatory conditions and inspection requirements will shape the pace of PBR's expanded exploration program. Petrobras (PBR - Free Report) is expanding its exploration program in Brazil’s promising Equatorial Margin after receiving regulatory approval to drill three additional wells in the Foz do Amazonas basin. The development marks another step in Petrobras’ efforts to evaluate the region’s hydrocarbon potential and could provide investors with greater visibility into the company’s long-term exploration pipeline.

Brazil’s environmental regulator Ibama authorized the additional drilling on Sept. 3, 2026, through a rectification of Operating License No. 1684, according to the Drilling Contractor. The approval covers the Manga, Crotalus and PAD Morpho wells in block FZA-M-59. The license also allows Petrobras to deploy a second drillship, the Amaralina Star (NS-43), alongside the ODN II.

However, the two rigs cannot operate simultaneously, and the Amaralina Star must first undergo an inspection by Ibama before it can be deployed. Petrobras is also required to submit an updated drilling schedule to the regulator within 30 days.

The approval is particularly significant because the new wells are designed to help delineate the reservoir associated with the Morpho discovery, where Petrobras confirmed the presence of hydrocarbons on Aug. 14, 2026.

Morpho Discovery Raises Exploration PotentialThe authorization comes at an important point in Petrobras’ Equatorial Margin exploration campaign. The company has been seeking to establish the commercial potential of offshore resources in the region, while regulatory requirements have remained a key factor influencing the pace of activity.

The Morpho discovery provides a more tangible exploration target for the newly approved wells. Rather than simply testing an unproven prospect, Petrobras can now use additional drilling to gather information about the size, quality and continuity of the reservoir.

This could help the company determine whether the discovery has the characteristics required to support future development.

The ODN II drillship is currently completing the Morpho well and is expected to move to the newly authorized locations afterward. The availability of the Amaralina Star provides Petrobras with additional operational flexibility, although the requirement for prior inspection and the prohibition against simultaneous operations limit how quickly the company can accelerate the program. For investors, the key takeaway is that Petrobras is moving beyond initial exploration and into a more detailed evaluation phase.

Equatorial Margin Could Become a Longer-Term Growth DriverPetrobras’ interest in the Equatorial Margin reflects the company’s broader need to replenish its resource base and maintain production growth over the long term. Brazil’s offshore sector has already demonstrated substantial resource potential, particularly in the pre-salt areas, but Petrobras continues to evaluate new exploration frontiers.

The Foz do Amazonas basin is part of this broader strategy. Successful appraisal drilling could strengthen Petrobras’ inventory of future development opportunities. Additional discoveries could give the company more flexibility in allocating capital among exploration, development and production projects. At the same time, investors should recognize that exploration activity carries considerable uncertainty. A confirmed hydrocarbon discovery does not automatically translate into a commercially viable development. Petrobras will need additional drilling and technical analysis to establish reservoir characteristics, recoverable volumes and economic viability. The newly authorized wells therefore represent an important information-gathering phase rather than an immediate production opportunity.

Regulatory Progress Is an Important CatalystThe latest Ibama approval is also notable from a regulatory perspective. Petrobras’ expansion of drilling activity in the Equatorial Margin depends on obtaining the necessary environmental approvals, making regulatory progress an important factor for investors tracking the company’s exploration outlook. The authorization for three additional wells indicates that Petrobras has secured permission to continue advancing its evaluation program in block FZA-M-59. The ability to use a second drillship also gives the company greater flexibility as it moves between drilling locations.

However, environmental scrutiny is likely to remain a feature of the project. Petrobras must comply with Ibama’s conditions, including the inspection requirement for the Amaralina Star and the submission of an updated drilling schedule. Consequently, the pace of exploration will depend not only on Petrobras’ technical and financial resources but also on its ability to navigate the regulatory process.

What It Means for Petrobras InvestorsThe expanded drilling program provides another potential catalyst for Petrobras. Additional drilling around the Morpho discovery could deliver more information about the resource and help determine whether the area can become part of the company’s future production portfolio.

Positive appraisal results could strengthen Petrobras’ long-term reserve replacement prospects and support its strategy of maintaining a large offshore resource base. Conversely, disappointing drilling results would limit the potential value of the discovery and could increase uncertainty around future development plans.

The near-term impact on earnings is likely to be limited because the newly authorized wells are part of an exploration and appraisal program rather than producing assets. The more important consideration is the potential impact on Petrobras’ future resource base and production capacity. The company’s ability to convert exploration success into commercially viable projects will ultimately determine the value created for shareholders.

Bottom LinePetrobras’ authorization to drill three additional wells in the Foz do Amazonas basin represents a meaningful step forward for its Equatorial Margin exploration strategy. The wells will help delineate the reservoir associated with the Morpho discovery and could provide important data on the region’s longer-term commercial potential.

While investors should not treat the latest approval as an immediate production catalyst, successful appraisal drilling could strengthen Petrobras’ future growth opportunities. The next key developments will be the results from the Morpho well, the company’s updated drilling schedule and findings from the newly authorized locations.

For now, Petrobras is building on an encouraging exploration result while gaining greater regulatory and operational flexibility to assess what could become an important addition to its Brazilian offshore resource portfolio.

PBR's Zacks Rank & Key PicksCurrently, PBR has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might consider some better-ranked stocks, such as Par Pacific (PARR - Free Report) and Delek US Holdings (DK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Oceaneering International (OII - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Par Pacific is valued at $4.07 billion. It is a diversified energy company that owns and operates petroleum refineries, logistics assets and retail fuel businesses across the United States. Par Pacific focuses on refining, transporting and marketing fuel products while serving regional markets with reliable energy solutions.

Delek US Holdings is valued at $4.4 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.

Oceaneering International is valued at $5.12 billion. It is a global technology and engineering company. Oceaneering International provides subsea robotics, offshore services, engineered products and advanced solutions to the energy, defense, aerospace and other industries.