Petroleo Brasileiro SA Petrobras (PBR): Today's Featured Basic Materials 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 Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day down 0.9%. By the end of trading, Petroleo Brasileiro SA Petrobras fell 44 cents (-2.3%) to $18.85 on average volume. Throughout the day, 18 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 12.3 million shares. The stock ranged in price between $18.76-$19.24 after having opened the day at $19.11 as compared to the previous trading day's close of $19.29. Other companies within the Basic Materials sector that declined today were: BMB Munai ( BMBM), down 11%, China Natural Resources ( CHNR), down 7.8%, GeoPetro Resources Company ( GPR), down 7.7%, and Basic Energy Services ( BAS), down 7.3%.
  • 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. operates as an integrated oil and gas company in Brazil and internationally. Petroleo Brasileiro SA Petrobras has a market cap of $126.14 billion and is part of the energy industry. The company has a P/E ratio of 6.3, below the S&P 500 P/E ratio of 17.7. Shares are down 21.5% year to date as of the close of trading on Wednesday. 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 deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

On the positive front, Geokinetics ( GOK), up 33.7%, Gasco Energy ( GSX), up 18.8%, GeoGlobal Resources ( GGR), up 14.6%, and Recovery Energy ( RECV), up 14.3%, were all gainers within the basic materials sector with Encana ( ECA) being today's featured basic materials sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

Holiday Special: Subscribe to Action Alerts PLUS to see how Jim Cramer trades his $2.5 Million+ portfolio for 51% off the list price. Your first 14-days are FREE: Sign up today to get e-mail alerts before every trade.
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