Royal Dutch Shell PLC (RDS.A): Today's Featured Energy Laggard

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.

Royal Dutch Shell ( RDS.A) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day down 0.3%. By the end of trading, Royal Dutch Shell fell 73 cents (-1%) to $71.42 on average volume. Throughout the day, 2.8 million shares of Royal Dutch Shell exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $70.54-$71.51 after having opened the day at $70.62 as compared to the previous trading day's close of $72.15. Other companies within the Energy industry that declined today were: Geokinetics ( GOK), down 22.4%, Voyager Oil & Gas ( VOG), down 10.4%, Emerald Oil ( EOX), down 10.4%, and Cheniere Energy Partners ( CQP), down 8.2%.
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Royal Dutch Shell plc operates as an oil and gas company worldwide. The company explores for and extracts crude oil and natural gas. Royal Dutch Shell has a market cap of $230.25 billion and is part of the basic materials sector. The company has a P/E ratio of 9.2, above the average energy industry P/E ratio of 8.6 and below the S&P 500 P/E ratio of 17.7. Shares are down 0.8% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Royal Dutch Shell as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Lone Pine Resources ( LPR), up 18.2%, Mexco Energy Corporation ( MXC), up 7%, PostRock Energy ( PSTR), up 6.4%, and BPZ Resources ( BPZ), up 4.9%, were all gainers within the energy industry with Petroleo Brasileiro SA Petrobras ( PBR.A) being today's featured energy industry leader.

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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