Weatherford International Ltd (WFT): 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.

Weatherford International ( WFT) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Weatherford International fell 18 cents (-1.4%) to $12.50 on average volume. Throughout the day, 9.8 million shares of Weatherford International exchanged hands as compared to its average daily volume of 11.1 million shares. The stock ranged in price between $12.38-$12.92 after having opened the day at $12.81 as compared to the previous trading day's close of $12.68. Other companies within the Energy industry that declined today were: Houston American Energy Corporation ( HUSA), down 29.8%, WSP Holdings ( WH), down 5.5%, Magellan Petroleum Corporation ( MPET), down 4.8%, and Miller Energy Resources ( MILL), down 4.2%.
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Weatherford International Ltd. provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. Weatherford International has a market cap of $9.61 billion and is part of the basic materials sector. The company has a P/E ratio of 28.1, above the average energy industry P/E ratio of 23 and above the S&P 500 P/E ratio of 17.7. Shares are down 13.6% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate Weatherford International a buy, three analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Weatherford International as a hold. Among the primary strengths of the company is its robust revenue growth -- not just in the most recent periods but in previous quarters as well. At the same time, however, we find that we feel that the company's cash flow from its operations has been weak overall.

On the positive front, Torch Energy Royalty ( TRU), up 17.6%, CVR Energy ( CVI), up 9.3%, GeoPetro Resources Company ( GPR), up 7.8%, and Energy Services of America Corporation ( ESA), up 6.8%, were all gainers within the energy industry with EOG Resources ( EOG) 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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