Petroleo Brasileiro SA Petrobras (PBR): Today's Featured Basic Materials Winner

Petroleo Brasileiro SA Petrobras ( PBR) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 1.2%. By the end of trading, Petroleo Brasileiro SA Petrobras rose 25 cents (1.1%) to $23.63 on average volume. Throughout the day, 11.5 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 13.6 million shares. The stock ranged in a price between $23.12-$23.72 after having opened the day at $23.15 as compared to the previous trading day's close of $23.38. Other companies within the Basic Materials sector that increased today were: Houston American Energy Corporation ( HUSA), up 35%, Recon Technology ( RCON), up 21.4%, Flexible Solutions International ( FSI), up 17.8%, and NewMarket Corporation ( NEU), up 16.4%.

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 $153.47 billion and is part of the energy industry. The company has a P/E ratio of 7.6, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 5.1% year to date as of the close of trading on Wednesday. Currently there is one analyst that rates Petroleo Brasileiro SA Petrobras a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Petroleo Brasileiro SA Petrobras as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

On the negative front, Lizhan Environmental ( LZEN), down 11.9%, Green Plains Renewable Energy ( GPRE), down 11.5%, Mission NewEnergy ( MNEL), down 9.8%, and GeoGlobal Resources ( GGR), down 8.6%, were all losers within the basic materials sector with Walter Energy ( WLT) being today's basic materials sector loser.

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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