5-Star Stocks Poised to Pop: Petrobras

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, South American oil giant Petroleo Brasileiro (NYSE: PBR) has earned a coveted five-star ranking.

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 (1953)

Market Cap

$158.1 billion

Industry

Integrated oil and gas

Trailing-12-Month Revenue

$109.4 billion

Management

CEO Jose de Azevedo (since 2005)
CFO Almir Barbassa (since 2005)

Return on Equity (Average, Past 3 Years)

22.5%

Cash / Debt

$5.2 billion / $34.5 billion

Other Highly Rated Oil Stocks

ExxonMobil (NYSE: XOM)
Chevron (NYSE: CVX)
BP (NYSE: BP)

CAPS Members Bullish on PBR Also Bullish on

Apple (Nasdaq: AAPL)

CAPS Members Bearish on PBR Also Bearish on

Ford Motor (NYSE: F)
Google (Nasdaq: GOOG)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 99% of the 1,125 All-Star members who have rated Petrobras believe the stock will outperform the S&P 500 going forward. These bulls include MajorMiner and jamespeer, both of whom are ranked in the top 15% of our community.

Just last month, MajorMiner tapped Petrobras as a Latin way to boost your energy (exposure):

The fundamental causes of high energy in 2008 have not gone away. The lending crisis slowed demand, but the underlying imbalance is still there. I expect the US dollar to drop because of China's dollar dumping and "quantitative easing". This sets up this ADR to be a real winner.

In a pitch from two weeks earlier, jamespeer elaborates on Petrobras as a giant opportunity:

Brazil is HUGE and there are still a lot of oil fields that are yet to be drilled in this vast country. Petrobras is basically the monopoly and I believe it will become an oil colossus to rival the likes of [Royal Dutch Shell] and BP in the future. As these companies and their respective economies regress, Brazil and Petrobras will just keep growing. Big thumbs up on [Petrobras] an oil giant for the future.

What do you think about Petrobras, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Petrobras is a Motley Fool Income Investor pick, Apple is a Stock Advisor selection, and Google is a recommendation of Rule Breakers. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 09, 2009, at 3:13 PM, kahunacfa wrote:

    <b>I care Not about the CAPS rating.</b> I own and have been buying shares of PBR ever since I read in an issue of <i>The Oil & Gas Journal</i> some time ago that Brazil in nearing a net energy Export status; and that some of PBR's deep water oil leases are larger that that of Saudi Arabia. Thew downside risk to PBR is that Brazil is a Communist country. There is always Government asset confiscation risk. Insurance can be purchased for this - it would be expensive.

    Except for the Environmentalists and the ban on certain types of Off-shore drilling and exploration, the United States could possible be energy independent by the year 2010 to 2012.

    KCFA has been buying natural resource companies for decades.

    Kahuna, CFA

    (C)Copyright 2009 Kahuna, CFA

    <Permission granted to TMF to reprint with proper

    MLA citation. This will be reposted on KahunaCFAS Investment Musings(R).

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Related Tickers

3/19/2010 4:01 PM
PBR $45.43 Down -0.80 -1.73%
Petroleo Brasileir… CAPS Rating: *****
BP $57.69 Down -0.46 -0.79%
BP plc (ADR) CAPS Rating: *****
F $13.29 Down -0.44 -3.20%
Ford Motor Company CAPS Rating: **
CVX $74.98 Up +0.22 +0.29%
Chevron Corp CAPS Rating: ****
XOM $67.04 Down -0.35 -0.52%
ExxonMobil Corp CAPS Rating: ****
AAPL $222.25 Down -2.40 -1.07%
Apple, Inc. CAPS Rating: ***
GOOG $560.00 Down -6.40 -1.13%
Google, Inc. CAPS Rating: ***

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