4-Star Stocks Poised to Pop: Petrobras

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 (NYS: PBR) has earned a respected four-star ranking.

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

Petrobras facts


Rio de Janeiro (1953)

Market Cap

$121.8 million


Integrated oil and gas

Trailing-12-Month Revenue

$138.7 billion


CEO Maria das Gracas Silva Foster (since February 2012)
CFO Almir Guilherme Barbassa (since July 2005)

Return on Equity (average, past 3 years)



$31.8 billion / $90.1 billion

Dividend Yield




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

On CAPS, 98% of the 4,273 members who have rated Petrobras believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, All-Star BlacknGold, tapped Petrobras as a particularly timely bargain opportunity:

The company is trading at a severe discount to fair book value. ... Oil is down right now and this company hasn't been a great one to own for the last several years, but most of the high hopes were priced in while it was overvalued. Now that some of the funny money is gone the company is undervalued. I swear I'll never understand why this happens, but [Petrobras] is looking pretty good at these levels.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Petrobras and Chevron. 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 Fool's disclosure policy always gets a perfect score.

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