We recently published a list of 11 Best Falling Stocks to Buy According to Analysts. In this article, we are going to take a look at where PPetróleo Brasileiro S.A. – Petrobras (NYSE:PBR) stands against other best falling stocks to buy according to analysts.
Over the past two years, bulls have been in control, pushing US markets to new heights with each pullback. Major indices rallied to record highs as artificial intelligence emerged as a key investment theme, especially in the technology sector. Stocks also rallied amid expectations that the US Federal Reserve will cut interest rates on inflationary pressures subsiding significantly. The rally to record highs saw valuations get out of hand beyond historical norms.
A change of administration and policies in the US was always going to be the catalyst to sway investors to exit risky bets amid the premium valuations. Donald Trump’s taking over, waging a trade war against allies, and imposing stringent tariffs on imports into the US is the latest headwind that is sending US equity markets lower.
The S&P 500 is already down by about 6%, and the tech-heavy NASDAQ is down by about 8%. The pullbacks come on growing concerns that the tariff war fuelled by Trump could plunge the global economy into recession. Similarly, there are growing fears that the US Federal Reserve will refrain from cutting interest rates as inflationary pressures show signs of edging higher.
Consequently, the US equity market remains on edge, with stocks exposed to the tariff war pulling back by double-digit percentage points. The uncertainty around President Trump’s tariffs and policies is sure to heighten volatility in the markets, as was the case in his first term.
Trump’s announcement of tariffs on Chinese imports in 2018 and 2019 caused stocks to perform poorly, according to data from economists at the Federal Reserve Bank of New York. Fast forward, we are seeing a repeat of similar performance in 2025, but on a larger scale.
Nevertheless, a falling stock market will always present unique investment opportunities for investors with a high-risk tolerance. As prices come down, opportunities to invest in stocks trading at highly discounted valuations are increasingly cropping up.
″‘Buying the dip’ depends upon your timeframe,” says Richard Smith, CEO of investing tool RiskSmith. “If you can keep your money in the markets for at least a couple of years, this is a good dip to buy. You’ll likely be disappointed if you’re banking on the market reversing [soon] and heading back up to new highs.”
Although it’s unclear if the stock sell-off will steepen in the weeks to come, there are exceptionally safe, historically inexpensive, time-tested stocks worth buying on the dip. In line with Warren Buffett’s strategy of pursuing opportunities when there is a blood bath, the best stocks in a shaky market will always be those with a rare combination of quality and healthy potential for growth.
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To curate the list of the 11 best-falling stocks to buy according to analysts, we used the Finviz stock screener. We defined falling stocks as those trading within 0% to 10% of their 52-week lows. Using the Finviz stock screener, we got an aggregated list of stocks that fit our criteria. Next, we ranked these stocks in ascending order based on analysts’ upside potential (as of May 2). We have also mentioned the hedge fund sentiment around each stock, as of Q4 2024.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Is Petroleo Brasileiro (PBR) the Best-Falling Stock to Buy According to Analysts?
A worker in a hard hat looking up at an offshore drilling rig at sunset.
52 Week Range: $11.03 – $17.41
Current Share Price: $11.35
Analysts Upside Potential as of May 2: 48.27%
Number of Hedge Fund Holders: 31
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is a Brazilian government-controlled energy company engaged in oil and gas exploration, production, refining, and marketing. It operates through three segments: Exploration & Production, Refining & Marketing, and Gas & Power, with a focus on efficiency and low carbon emissions. The stock has declined 13.67% year to date, reflecting ongoing market challenges.
On April 29, Petroleo Brasileiro (NYSE:PBR) reported Q1 2025 production of 2.77 million barrels of oil equivalent per day (boed), down 0.2% YoY, with Brazilian oil output falling 1% YoY to 2.21 million barrels per day (bpd). The FPSO Almirante Tamandare began operations in February at the Buzios field, supporting sustainable production growth. Sales of oil, gas, and derivatives reached 2.86 million boed, a 1.9% YoY drop, while exports declined 10.4% to 760,000 bpd. However, oil exports to Asia (excluding China) rose from 10% to 33%. Petrobras also signed a 6-million-barrel annual export deal with India’s Bharat Petroleum Corporation, starting in 2025.
Petroleo Brasileiro (NYSE:PBR) holds a Strong Buy rating from 6 analysts, with 5 buy, 1 hold, and 0 sell ratings. The 12-month average price target is $16.74, ranging from $15.00 to $19.00, reflecting a 47.49% upside from its $11.35 current price.
Overall, PBR ranks 2nd on our list of best falling stocks to buy according to analysts. While we acknowledge the potential of PBR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PBR but that trades at less than 5 times its earnings check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
