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 up 0.2%. By the end of trading, Petroleo Brasileiro SA Petrobras fell 27 cents (-1.4%) to $19.30 on average volume. Throughout the day, 12.2 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 11.3 million shares. The stock ranged in price between $19.15-$19.62 after having opened the day at $19.47 as compared to the previous trading day's close of $19.57. Other companies within the Energy industry that declined today were: HyperDynamics Corporation ( HDY), down 15.7%, Recovery Energy ( RECV), down 14.2%, BMB Munai ( BMBM), down 10.7%, and Andatee China Marine Fuel Services Corporat ( AMCF), down 9.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $131.03 billion and is part of the basic materials sector. The company has a P/E ratio of 6.5, below the S&P 500 P/E ratio of 17.7. Shares are down 18.4% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Petroleo Brasileiro SA Petrobras a buy, no analysts rate it a sell, and seven 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 attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

On the positive front, Emerald Oil ( EOX), up 225.8%, Recon Technology ( RCON), up 137.1%, Camac Energy ( CAK), up 29.8%, and New Concept Energy ( GBR), up 9.7%, were all gainers within the energy industry with Halliburton Company ( HAL) 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).

FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!.
null

If you liked this article you might like

The Retail Apocalypse Is About to Descend on Wall Street This Coming Week

Former Petrobras CEO Bendine Arrested in Bribe Probe

Pirates Step Up Attacks on Petrobras Refineries in the Amazon

Petrobras Stock Jumps on CVM Decision, Lula Conviction

Former Brazilian President Lula Gets 9 Years For Corruption