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

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 higher today making it today's featured energy winner. The industry as a whole closed the day up 0.7%. By the end of trading, Petroleo Brasileiro SA Petrobras rose 26 cents (1.4%) to $18.39 on heavy volume. Throughout the day, 22 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 11.8 million shares. The stock ranged in a price between $18-$18.46 after having opened the day at $18.11 as compared to the previous trading day's close of $18.13. Other companies within the Energy industry that increased today were: Andatee China Marine Fuel Services Corporat ( AMCF), up 17.2%, Gulfport Energy Corporation ( GPOR), up 16.1%, New Concept Energy ( GBR), up 13.4%, and HyperDynamics Corporation ( HDY), up 10.2%.
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Petroleo Brasileiro S.A. operates as an integrated oil and gas company in Brazil and internationally. Petroleo Brasileiro SA Petrobras has a market cap of $121.57 billion and is part of the basic materials sector. The company has a P/E ratio of 6.1, below the S&P 500 P/E ratio of 17.7. Shares are down 24.3% year to date as of the close of trading on Tuesday. Currently there are two 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 negative front, GeoGlobal Resources ( GGR), down 11%, Equal Energy ( EQU), down 6.5%, GeoPetro Resources Company ( GPR), down 5.9%, and Lone Pine Resources ( LPR), down 5.9%, were all laggards within the energy industry with Southwestern Energy Company ( SWN) being today's energy industry laggard.

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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