Rowan Companies PLC (RDC): Today's Featured Energy Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Rowan Companies ( RDC) pushed the Energy industry higher today making it today's featured energy winner. The industry as a whole closed the day down 0.9%. By the end of trading, Rowan Companies rose 46 cents (1.3%) to $36.84 on heavy volume. Throughout the day, 2.3 million shares of Rowan Companies exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in a price between $36.01-$39.40 after having opened the day at $36.33 as compared to the previous trading day's close of $36.38. Other companies within the Energy industry that increased today were: Geokinetics ( GOK), up 56.1%, Lone Pine Resources ( LPR), up 4.9%, FieldPoint Petroleum Corporation ( FPP), up 3.9%, and KiOR ( KIOR), up 3.9%.
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Rowan Companies plc, through its subsidiaries, provides offshore oil and gas contract drilling services in the United States and internationally. Rowan Companies has a market cap of $4.61 billion and is part of the basic materials sector. The company has a P/E ratio of 27.1, above the average energy industry P/E ratio of 13.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 19.9% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate Rowan Companies a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Rowan Companies as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, HyperDynamics Corporation ( HDY), down 9.1%, Goodrich Petroleum ( GDP), down 7.9%, Quicksilver Resources ( KWK), down 7.8%, and Double Eagle Petroleum Company ( DBLE), down 7.7%, were all laggards within the energy industry with Anadarko Petroleum ( APC) being today's energy industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

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