5-Star Stocks Poised to Pop: Petrobras

Based on the aggregated intelligence of 110,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, South American oil giant Petroleo Brasileiro (NYSE: PBR  ) , commonly known as Petrobras, has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

Petrobras facts

Headquarters (Founded)

Rio de Janeiro, Brazil (1953)

Market Cap

$255 billion

Industry

Integrated Oil & Gas

TTM Revenue

$111.91 billion

Management

CEO Jose Sergio Gabrielli
CFO Almir Guilherme Barbassa

Return on Equity (avg. last three years)

26.6%

CAPS members bullish on PBR also bullish on

Vale (RIO)
Apple (Nasdaq: AAPL  )

CAPS members bearish on PBR also bearish on

General Motors (NYSE: GM  )
Baidu.com (Nasdaq: BIDU  )
First Solar (Nasdaq: FSLR  )
Centex (NYSE: CTX  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 942 of the 958 All-Star members who have rated Petrobras -- 98% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include LORDZPAIN and my fellow Fool TMFDeej, both of whom are ranked in the top 2% of our community.

Just last month, LORDZPAIN let our community know that with Petrobras, "you get an oil play, you get a foreign diversification play, you get the booming economy of Brazil, you get a win-win situation."

An earlier pitch from TMFDeej in September 2007 shared that bullish sentiment, noting the stock's eco-friendlier qualities as well:

I initially came across Petrobas when looking for ways to capitalize on growing market for ethanol, but I have come to learn that not only is it an ethanol play but it is one of the best, most undervalued oil companies out there. It has huge proven reserves and great expansion efforts. It's even looking into adding refining capacity and I am very bullish on refiners. Furthermore, it has been consistently raising its dividend, which is always a good sign.

What do you think about Petrobras, or any other stock, for that matter? Make your voice heard on Motley Fool CAPS today. More than 110,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Petrobras a Motley Fool Income Investor recommendation. Apple is a Stock Advisor pick. Baidu is a Rule Breakers choice. Try any of our Foolish newsletters today, free for 30 days.

Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.


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