Petroleum Giant Petrobras Upgraded to Strong Buy: A Closer Look at the Implications

Petrobras (PBR) has been upgraded to a Zacks Rank #1 (Strong Buy) due to an upward trend in earnings estimates. The Zacks rating system tracks the Zacks Consensus Estimate for the current and following years, and a change in a company's future earnings potential is strongly correlated with its near-term stock price movement. Rising earnings estimates and the rating upgrade imply an improvement in Petrobras' underlying business, which should lead to higher stock prices.