Petroleo Brasileiro SA Petrobras (PBR): 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) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Petroleo Brasileiro SA Petrobras fell $1.18 (-5.3%) to $21.22 on average volume. Throughout the day, 15.7 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 12.4 million shares. The stock ranged in price between $21.10-$21.70 after having opened the day at $21.61 as compared to the previous trading day's close of $22.40. Other companies within the Energy industry that declined today were: BMB Munai ( BMBM), down 94.2%, Geokinetics ( GOK), down 17.2%, FX Energy ( FXEN), down 10.7%, and QEP Resources ( QEP), down 7.9%.
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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 $146.1 billion and is part of the basic materials sector. The company has a P/E ratio of 7.3, below the average energy industry P/E ratio of 12.7 and below the S&P 500 P/E ratio of 17.7. Shares are down 9.1% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Petroleo Brasileiro SA Petrobras a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Petroleo Brasileiro SA Petrobras as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

On the positive front, Houston American Energy Corporation ( HUSA), up 55.1%, HyperDynamics Corporation ( HDY), up 29.9%, Recon Technology ( RCON), up 23.6%, and GeoPetro Resources Company ( GPR), up 21.8%, were all gainers within the energy industry with Anadarko Petroleum ( APC) 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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