Ensco PLC (ESV): 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.

Ensco ( ESV) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day down 0.7%. By the end of trading, Ensco fell $1.66 (-2.9%) to $56.57 on light volume. Throughout the day, 2.4 million shares of Ensco exchanged hands as compared to its average daily volume of 3.8 million shares. The stock ranged in price between $56.55-$57.79 after having opened the day at $57.47 as compared to the previous trading day's close of $58.23. Other companies within the Energy industry that declined today were: GeoPetro Resources Company ( GPR), down 11.1%, Houston American Energy Corporation ( HUSA), down 9.4%, Andatee China Marine Fuel Services Corporat ( AMCF), down 8.4%, and Cobalt International Energy ( CIE), down 8.2%.
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Ensco plc provides offshore contract drilling services to the oil and gas industry worldwide. Ensco has a market cap of $13.43 billion and is part of the basic materials sector. The company has a P/E ratio of 12.5, below the average energy industry P/E ratio of 12.7 and below the S&P 500 P/E ratio of 17.7. Shares are up 23.4% year to date as of the close of trading on Friday. Currently there are 18 analysts that rate Ensco a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Ensco as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year, expanding profit margins, good cash flow from operations and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, BMB Munai ( BMBM), up 23.6%, Longwei Petroleum Investment Holding Limite ( LPH), up 21.5%, Lucas Energy ( LEI), up 7.2%, and Zion Oil & Gas ( ZN), up 5.7%, were all gainers within the energy industry with ConocoPhillips ( COP) 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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