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

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 stock to keep an eye on is Petrobras (PBR - Free Report) . PBR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Another notable valuation metric for PBR is its P/B ratio of 0.97. 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 stock's P/B looks attractive against its industry's average P/B of 1.16. Over the past 12 months, PBR's P/B has been as high as 1.67 and as low as 0.79, with a median of 1.09.

Finally, investors should note that PBR has a P/CF ratio of 2.31. 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 stock's P/CF looks attractive against its industry's average P/CF of 3.62. Over the past year, PBR's P/CF has been as high as 10.63 and as low as 2.16, with a median of 4.32.

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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