Why Petrobras Argentina 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, integrated energy company Petrobras Argentina has earned a coveted five-star ranking.

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

Petrobras Argentina facts

Headquarters (Founded)

Buenos Aires, Argentina (2010)

Market Cap

$1.1 billion

Industry

Integrated oil and gas

Trailing-12-Month Revenue

$2.7 billion

Management

CEO Carlos Da Costa (since 2010)
CFO Luis Sas (since 2004)

Return on Equity (Average, Past 3 Years)

3.3%

Cash/Debt

$271.7 million / $565.9 million

Dividend Yield

2.8%

Competitors

Petroleos de Venezuela
Petroleos Mexicanos
YPF


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

On CAPS, 96% of the 656 members who have rated Petrobras Argentina believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star Staka, offered a balance take on the Petrobras Argentina opportunity:

Positive:
-You can buy them for half the tangible book value due to fears of nationalization.
-Cash flow is solid. Debt is low.

Negative:
-Nationalization might happen if the Argentine goverment gets even more desperate. At some point they should understand the idiocy of all that but you never know, they are politicians.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, Petrobras Argentina may not be your top choice.

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

Fool contributor Brian Pacampara and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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