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Is Petrobras (PBR) a Great Value Stock Right Now?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Petrobras (PBR - Free Report) . PBR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.02 right now. For comparison, its industry sports an average P/E of 6.51. Over the past year, PBR's Forward P/E has been as high as 15.77 and as low as 5.52, with a median of 9.86.

Another valuation metric that we should highlight is PBR's P/B ratio of 1. The P/B is a method of comparing a stock's market value to 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 1.77. Over the past year, PBR's P/B has been as high as 1.34 and as low as 0.72, with a median of 0.94.

Finally, investors should note that PBR has a P/CF ratio of 4.52. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.62. PBR's P/CF has been as high as 8.03 and as low as 2.47, with a median of 4.65, all within the past year.

These are only a few of the key metrics included in Petrobras's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PBR looks like an impressive value stock at the moment.


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