Is Petrobras (PBR) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Petrobras (PBR) is a stock many investors are watching right now. PBR is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
We should also highlight that PBR has a P/B ratio of 0.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.16. PBR's P/B has been as high as 1.67 and as low as 0.79, with a median of 1.01, over the past year.
Finally, investors will want to recognize that PBR has a P/CF ratio of 2.26. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 3.63. Over the past year, PBR's P/CF has been as high as 10.63 and as low as 2.04, with a median of 3.35.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Petrobras is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PBR feels like a great value stock at the moment.
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Petroleo Brasileiro S.A. Petrobras (PBR): Free Stock Analysis Report
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