Trade-Ideas LLC identified

Petroleo Brasileiro SA Petrobras

(

PBR

) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Petroleo Brasileiro SA Petrobras as such a stock due to the following factors:

  • PBR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $196.1 million.
  • PBR traded 44,870 shares today in the pre-market hours as of 8:43 AM.
  • PBR is down 3.3% today from yesterday's close.

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More details on PBR:

Petroleo Brasileiro S.A. - Petrobras operates as an integrated energy company in Brazil and internationally. Currently there are no analysts that rate Petroleo Brasileiro SA Petrobras a buy, 4 analysts rate it a sell, and 5 rate it a hold.

The average volume for Petroleo Brasileiro SA Petrobras has been 35.0 million shares per day over the past 30 days. Petroleo Brasileiro SA Petrobras has a market cap of $46.6 billion and is part of the basic materials sector and energy industry. Shares are up 64.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Petroleo Brasileiro SA Petrobras as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 117.1% when compared to the same quarter one year ago, falling from $1,862.00 million to -$318.00 million.
  • The share price of PETROLEO BRASILEIRO SA- PETR has not done very well: it is down 24.70% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Currently the debt-to-equity ratio of 1.69 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, PBR's quick ratio is somewhat strong at 1.02, demonstrating the ability to handle short-term liquidity needs.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, PETROLEO BRASILEIRO SA- PETR's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Net operating cash flow has decreased to $4,428.00 million or 22.84% when compared to the same quarter last year. Despite a decrease in cash flow PETROLEO BRASILEIRO SA- PETR is still fairing well by exceeding its industry average cash flow growth rate of -40.87%.

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