NEW YORK (TheStreet) -- Ensco (ESV) stock is advancing by 4.75% to $14.21 in afternoon trading on Tuesday, after oil prices increased on expectations of a decline in U.S. crude stockpiles.

WTI crude is rising 2.5% to $45.54 per barrel, while Brent crude is up 2.22% to $48.39 per barrel this afternoon, according to the index.

The U.S. Energy Information Administration is expected to report a decline of 500,000 barrels in U.S. crude inventory on Wednesday, according to a Reuters survey.

"Until a slew of fundamental guidance is presented tomorrow from the EIA, oil appears poised to track U.S. equities for another session," Ritterbusch & Associates' Jim Ritterbusch told Reuters.

Inventories at the Cushing, Okla. delivery point are estimated to have dropped by one million barrels, according to Genscape, Reuters added.

Separately, TheStreet Ratings team rates ENSCO PLC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate ENSCO PLC (ESV) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, ENSCO PLC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $427.80 million or 15.25% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, ENSCO PLC has marginally lower results.
  • ESV's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 65.49%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Despite the weak revenue results, ESV has outperformed against the industry average of 22.5%. Since the same quarter one year prior, revenues slightly dropped by 6.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • ENSCO PLC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ENSCO PLC swung to a loss, reporting -$11.70 versus $6.08 in the prior year. This year, the market expects an improvement in earnings ($4.12 versus -$11.70).
  • You can view the full analysis from the report here: ESV