Petroleo Brasileiro SA Petrobras (PBR.A): Today's Featured Energy Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Petroleo Brasileiro SA Petrobras ( PBR.A) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Petroleo Brasileiro SA Petrobras fell 23 cents (-1%) to $21.82 on light volume. Throughout the day, 5.8 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of eight million shares. The stock ranged in price between $21.77-$22.05 after having opened the day at $22.04 as compared to the previous trading day's close of $22.05. Other companies within the Energy industry that declined today were: Houston American Energy Corporation ( HUSA), down 17.6%, Penn Virginia Corporation ( PVA), down 15.9%, Geokinetics ( GOK), down 8.2%, and Renewable Energy Group ( REGI), down 7.5%.
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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 $143.36 billion and is part of the basic materials sector. The company has a P/E ratio of 7.1, below the S&P 500 P/E ratio of 17.7. Shares are down 5.6% year to date as of the close of trading on Monday.

TheStreet Ratings rates Petroleo Brasileiro SA Petrobras as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

On the positive front, Energy Services of America Corporation ( ESA), up 10.1%, Gulfport Energy Corporation ( GPOR), up 7.3%, Newfield Exploration Company ( NFX), up 6.1%, and Sonde Resources ( SOQ), up 5.6%, were all gainers within the energy industry with EOG Resources ( EOG) being today's featured energy industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

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