Trade-Ideas LLC identified Petroleo Brasileiro SA Petrobras ( PBR.A) as a "dead cat bounce" (down big yesterday but up big today) 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 $75.8 million.
  • PBR.A has traded 94,999 shares today.
  • PBR.A is up 5.3% today.
  • PBR.A was down 5.5% yesterday.

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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 12.4 million shares per day over the past 30 days. Petroleo Brasileiro SA Petrobras has a market cap of $37.6 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 deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 117.1% when compared to the same quarter one year ago, falling from $1,862.00 million to -$318.00 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 31.56%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 117.85% compared to the year-earlier 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 1.69 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 1.02, demonstrating the ability to handle short-term liquidity needs.
  • 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. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, PETROLEO BRASILEIRO SA- PETR's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Net operating cash flow has decreased to $4,428.00 million or 22.84% when compared to the same quarter last year. Despite a decrease in cash flow PETROLEO BRASILEIRO SA- PETR is still fairing well by exceeding its industry average cash flow growth rate of -49.84%.

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