PBR Chart PBR data by YCharts

Petroleo Brasileiro Petrobras SA ( PBR)

Background: Petrobras is an integrated company operating in exploration, production, refining, retailing and transportation of petroleum and its byproducts at home and abroad. The company was founded in 1953 and is based in Rio de Janeiro, Brazil. Petrobras trades an average of 10 million shares per day with a market cap of $83 billion.

52-Week High: $32.60

52-Week Low: $17.27

Book Value: $25.55

The P/E ratio has come down, as the current trailing 12-months P/E is 12.7 while the forward P/E is now 9.12. It appears based on the lower PE that investors are pricing in lower earnings growth.

The fiscal year earnings estimate is $2.43 per share this year. This stock currently has an annualized dividend of 11 cents, yielding 0.48%. After a decline in dividend payments, I believe the shares are now in strong hands and should continue the climb in price that began in June.

Technically, Petrobras has broken several areas of resistance and based on a shorter time frame, is trending higher. For the daily chart, shares have broken above the 90 day moving average and now are poised to test the 200-day moving average again shortly.

PBR Free Cash Flow Chart PBR Free Cash Flow data by YCharts

ACI Chart ACI data by YCharts


Arch Coal ( ACI)

Background: Arch is engaged in the mining, processing and marketing of low-sulfur bituminous coal. The company sells its coal primarily to electric utilities in the eastern United States and exports coal, primarily to European customers. Arch trades an average of 11.6 million shares per day with a market cap of $1.4 billion.

52-Week High: $20.49

52-Week Low: $5.16

Book Value: $14.72

The average analyst target price for ACI is $9.77. Investors are receiving 12 cents in dividends for a yield of 1.82%. Reviewing the dividend payment history of a company is essential research. While a past payment doesn't guarantee future dividends, the history does provide color. The average dividend during the last three years was 39 cents. Over the last five years, the dividend has grown by an average of 14.3% per year. Arch will need to turn around the negative earnings results quickly or risk a shortfall for maintaining the dividend.

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