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 1.2%. By the end of trading, Petroleo Brasileiro SA Petrobras fell $0.63 (-4.1%) to $14.75 on heavy volume. Throughout the day, 22,551,238 shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 14,387,300 shares. The stock ranged in price between $14.68-$15.46 after having opened the day at $15.27 as compared to the previous trading day's close of $15.38. Other companies within the Basic Materials sector that declined today were: Inergy L.P ( NRGY), down 38.2%, Asanko Gold ( AKG), down 26.9%, BMB Munai ( BMBM), down 25.0% and Zion Oil & Gas ( ZN), down 20.8%.
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Petroleo Brasileiro S.A. - Petrobras operates as an integrated oil and gas company in Brazil and internationally. Petroleo Brasileiro SA Petrobras has a market cap of $102.0 billion and is part of the energy industry. The company has a P/E ratio of 9.2, below the S&P 500 P/E ratio of 17.7. Shares are down 21.0% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Petroleo Brasileiro SA Petrobras a buy, no analysts rate it a sell, and 7 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 poor profit margins.

On the positive front, U.S. Energy ( USEG), down 12.0%, Crosshair Energy ( CXZ), down 10.6%, Yongye International ( YONG), down 10.4% and Andatee China Marine Fuel Services Corporat ( AMCF), down 9.8% , were all gainers within the basic materials sector with Gulfport Energy Corporation ( GPOR) 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).

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