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 0.2%. By the end of trading, Petroleo Brasileiro SA Petrobras fell 23 cents (-1.5%) to $14.67 on average volume. Throughout the day, 13.3 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 16 million shares. The stock ranged in price between $14.63-$14.84 after having opened the day at $14.78 as compared to the previous trading day's close of $14.90. Other companies within the Energy industry that declined today were: YPF Sociedad Anonima ( YPF), down 14.3%, Cal Dive International ( DVR), down 12.6%, U.S. Energy ( USEG), down 10.3%, and GeoPetro Resources Company ( GPR), down 10%.
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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 $97.05 billion and is part of the basic materials sector. The company has a P/E ratio of 4.8, below the S&P 500 P/E ratio of 17.7. Shares are down 23.6% 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 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 positive front, GeoGlobal Resources ( GGR), up 9.7%, GMX Resources ( GMXR), up 9.1%, Diamondback Energy ( FANG), up 8.3%, and BMB Munai ( BMBM), up 8%, were all gainers within the energy industry with Williams Companies ( WMB) 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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