Petroleo Brasileiro SA Petrobras (PBR): Today's Featured Basic Materials 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 Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 0.2%. By the end of trading, Petroleo Brasileiro SA Petrobras rose 25 cents (1.6%) to $16.06 on average volume. Throughout the day, 13.7 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 15.5 million shares. The stock ranged in a price between $15.74-$16.12 after having opened the day at $15.88 as compared to the previous trading day's close of $15.81. Other companies within the Basic Materials sector that increased today were: Torch Energy Royalty ( TRU), up 21.2%, Alderon Iron Ore ( AXX), up 18.6%, North American Energy Partners Incorporate ( NOA), up 11.6%, and Sutor Technology Group ( SUTR), up 11.3%.
  • 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 $105.53 billion and is part of the energy industry. The company has a P/E ratio of 5.3, below the S&P 500 P/E ratio of 17.7. Shares are down 16.9% year to date as of the close of trading on Monday. Currently there are two analysts that rate Petroleo Brasileiro SA Petrobras a buy, no analysts rate it a sell, and nine 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 increase in net income, attractive valuation levels and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins.

On the negative front, Crosshair Energy ( CXZ), down 10.2%, ZaZa Energy ( ZAZA), down 8.6%, Comstock Resources ( CRK), down 7.9%, and Ocean Rig UDW ( ORIG), down 7.7%, were all laggards within the basic materials sector with CF Industries Holdings ( CF) being today's basic materials sector laggard.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
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