NEW YORK (TheStreet) -- Shares of Petrobras-Petroleo Brasiliera are down 16.16% to $10.84 in pre-market trade following the narrow re-election yesterday ofaBrazil's leftist President Dilma Rousseff after convincing voters that her party's strong record of reducing poverty over the last 12 years was more important than a recent economic slump, Reuters reports. After one of the closest, most divisive campaigns in Brazil in decades, Rousseff won 51.6% of votes in a runoff against centrist opposition leader Aecio Neves, who won 48.4% with more than 99% of the votes tallied, Reuters said. Investors have generally disliked Rousseff's interventionist management of state-run companies and other sectors of the economy, and Brazil's financial markets plummeted last week when polls showed she was likely to win a second term, Reuters noted. They could see another sell off today. Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates PETROBRAS-PETROLEO BRASILIER as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate PETROBRAS-PETROLEO BRASILIER (PBR) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: PBR's revenue growth has slightly outpaced the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 3.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. PBR's debt-to-equity ratio of 0.84 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.30 is sturdy. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 25.7% when compared to the same quarter one year ago, falling from $2,996.00 million to $2,225.00 million. The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, PETROBRAS-PETROLEO BRASILIER's return on equity is significantly below that of the industry average and is below that of the S&P 500. You can view the full analysis from the report here: PBR Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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