Trade-Ideas LLC identified Petroleo Brasileiro SA Petrobras ( PBR.A) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Petroleo Brasileiro SA Petrobras as such a stock due to the following factors:

  • PBR.A has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $68.0 million.
  • PBR.A is down 2.8% today from today's close.

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More details on PBR.A:

Petroleo Brasileiro S.A. - Petrobras operates as an integrated energy company in Brazil and internationally.

The average volume for Petroleo Brasileiro SA Petrobras has been 11.3 million shares per day over the past 30 days. Petroleo Brasileiro SA Petrobras has a market cap of $34.5 billion and is part of the basic materials sector and energy industry. Shares are up 59.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Petroleo Brasileiro SA Petrobras as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from the ratings report include:
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, PETROLEO BRASILEIRO SA- PETR underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • PBR.A's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 37.03%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Currently the debt-to-equity ratio of 1.91 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, PBR.A's quick ratio is somewhat strong at 1.20, demonstrating the ability to handle short-term liquidity needs.
  • PETROLEO BRASILEIRO SA- PETR's earnings per share improvement from the most recent quarter was slightly positive. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PETROLEO BRASILEIRO SA- PETR reported poor results of -$1.31 versus -$1.12 in the prior year. This year, the market expects an improvement in earnings ($0.06 versus -$1.31).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 34.2%. Since the same quarter one year prior, revenues fell by 33.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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