Why Petrobras Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, South American oil giant Petroleo Brasileiro has earned a respected four-star ranking.

With that in mind, let's take a closer look at Petrobras, and see what CAPS investors are saying about the stock right now.

Petrobras facts

 

 

Headquarters (founded)

Rio de Janeiro (1953)

Market Cap

$105.3 billion

Industry

Integrated oil and gas

Trailing-12-Month Revenue

$138.2 billion

Management

CEO Maria das Gracas Silva Foster (since 2012)

CFO Almir Guilherme Barbassa (since 2005)

Return on Equity (average, past 3 years)

10.5%

Cash/Debt

$24.0 billion / $96.4 billion

Dividend Yield

1.5%

Competitors

BP

Chevron

ExxonMobil


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 4,208 members who have rated Petrobras believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, walstam, tapped Petrobras as a particularly solid bargain opportunity:

Low price to book and relatively high operating margins positions this company for long-term growth. Government meddling may limit current upside but may also help long-term when political focus shifts from consumer protection to international competitiveness. Brazil is South America's long-term growth engine. Much of this growth will come from its natural resources.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Petrobras may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Petrobras Is Poised to Bounce Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Chevron and Petroleo Brasileiro S.A. (ADR). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Behavioral Finance

Why do investors make the decisions that they do?

View Course »

What are Penny Stocks

The lucrative and dangerous world of penny stocks.

View Course »

Add a Comment

*0 / 3000 Character Maximum