NEW YORK (

TheStreet

)

-- Stone Energy Corporation

(NYSE:

SGY

) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has not been very careful in the management of its balance sheet.

Stone Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, exploitation, development, and operation of oil and gas properties located in the Gulf of Mexico and Appalachia region. The company has a P/E ratio of 130, equal to the average energy industry P/E ratio and above the S&P 500 P/E ratio of 22.7. Stone Energy has a market cap of $1.3 billion and is part of the

basic materials

sector and

energy

industry. Shares are up 18.2% year to date as of the close of trading on Wednesday.

You can view the full

Stone Energy Ratings Report

or get investment ideas from our

investment research center

.

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