Why Petrobras Is Ready to Rebound

Updated

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

$128.2 billion

Industry

Integrated oil and gas

Trailing-12-Month Revenue

$134.2 billion

Management

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

Return on Equity (average, past 3 years)

9.9%

Cash / Debt

$26.0 billion / $91.6 billion

Dividend Yield

1.2%

Competitors

BP
Chevron
ExxonMobil


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

On CAPS, 94% of the 635 members who have rated Petrobras believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, mpp100, succinctly summed up the Petrobras bull case for our community:

Once oil demand picks back up after the world fixes its collective economic debacle, [Petrobras] will gain. When will that happen? No idea although I think we're seeing some signs of it now. I'll go out on a limb and call for a double in 5 yrs. Collect the dividend while you wait.

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.

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The article Why Petrobras Is Ready to Rebound originally appeared on Fool.com.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Chevron and Petroleo Brasileiro S.A. (ADR). The Motley Fool owns shares of ExxonMobil. 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.

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