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Are Investors Undervaluing Petrobras (PBR) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Petrobras (PBR - Free Report) . PBR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.55 right now. For comparison, its industry sports an average P/E of 5.79. PBR's Forward P/E has been as high as 15.77 and as low as 5.55, with a median of 10.14, all within the past year.
Investors should also recognize that PBR has a P/B ratio of 0.80. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.45. Over the past 12 months, PBR's P/B has been as high as 1.34 and as low as 0.72, with a median of 0.85.
Finally, we should also recognize that PBR has a P/CF ratio of 4.07. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.95. Over the past year, PBR's P/CF has been as high as 8.03 and as low as 2.47, with a median of 5.43.
Value investors will likely look at more than just these metrics, but the above data helps show that Petrobras is likely undervalued currently. And when considering the strength of its earnings outlook, PBR sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Petrobras (PBR) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Petrobras (PBR - Free Report) . PBR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.55 right now. For comparison, its industry sports an average P/E of 5.79. PBR's Forward P/E has been as high as 15.77 and as low as 5.55, with a median of 10.14, all within the past year.
Investors should also recognize that PBR has a P/B ratio of 0.80. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.45. Over the past 12 months, PBR's P/B has been as high as 1.34 and as low as 0.72, with a median of 0.85.
Finally, we should also recognize that PBR has a P/CF ratio of 4.07. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.95. Over the past year, PBR's P/CF has been as high as 8.03 and as low as 2.47, with a median of 5.43.
Value investors will likely look at more than just these metrics, but the above data helps show that Petrobras is likely undervalued currently. And when considering the strength of its earnings outlook, PBR sticks out at as one of the market's strongest value stocks.