Petroleo Brasileiro SA Petrobras (PBR.A): Today's Featured Basic Materials Loser

The basic materials sector was unchanged today. Newfield Exploration Company ( NFX), Lizhan Environmental ( LZEN), Magellan Petroleum Corporation ( MPET), and Cano Petroleum Inc ( CFW) were all decliners today within the basic materials sector with Petroleo Brasileiro SA Petrobras ( PBR.A) being today's featured basic materials loser. Petroleo Brasileiro SA Petrobras fell 53 cents (-2.4%) to $21.44 on light volume. Throughout the day, 5.5 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of eight million shares.

Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. Petroleo Brasileiro SA Petrobras has a market cap of $146.7 billion and is part of the energy industry. The company has a P/E ratio of 6.4, below the S&P 500 P/E ratio of 17.7. Shares are down 34.2% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Petroleo Brasileiro SA Petrobras as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

On the positive front, Uranium Resources Inc ( URRE), Ur-Energy Inc ( URG), Denison Mines Corporation ( DNN), and Patriot Coal Corporation ( PCX) were all gainers within the basic materials sector with ConocoPhillips ( COP) being today's featured basic materials sector winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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