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 $77.0 million.
  • PBR.A has traded 60,743 shares today.
  • PBR.A is up 4.1% today.
  • PBR.A was down 6.6% 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 11.6 million shares per day over the past 30 days. Petroleo Brasileiro SA Petrobras has a market cap of $44.7 billion and is part of the basic materials sector and energy industry. Shares are up 114.4% 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 feeble growth in its earnings per share.

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.
  • 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 -49.98%.
  • PETROLEO BRASILEIRO SA- PETR has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse 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 ($0.81 versus -$1.31).

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