5 Stocks Pushing The Energy Industry Higher

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

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 10 points (-0.1%) at 13,082 as of Monday, Nov. 5, 2012, 1:34 PM ET. The NYSE advances/declines ratio sits at 1,351 issues advancing vs. 1,574 declining with 129 unchanged.

The Energy industry currently sits up 0.5% versus the S&P 500, which is down 0.1%. Top gainers within the industry include Cameron International Corporation ( CAM), up 4.1%, Marathon Petroleum ( MPC), up 3.7% and Continental Resources ( CLR), up 1.2%. On the negative front, top decliners within the industry include Penn West Petroleum ( PWE), down 4.2%, and Eni SpA ( E), down 1.6%.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry higher today:

5. Transocean ( RIG) is one of the companies pushing the Energy industry higher today. As of noon trading, Transocean is up $2.11 (4.6%) to $48.17 on average volume Thus far, 5.2 million shares of Transocean exchanged hands as compared to its average daily volume of 3.5 million shares. The stock has ranged in price between $47.35-$48.77 after having opened the day at $47.66 as compared to the previous trading day's close of $46.06.

Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. Transocean has a market cap of $16.6 billion and is part of the basic materials sector. The company has a P/E ratio of -2.3, below the S&P 500 P/E ratio of 17.7. Shares are up 20.1% year to date as of the close of trading on Friday. Currently there are 17 analysts that rate Transocean a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Transocean as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Get the full Transocean Ratings Report now.

4. As of noon trading, Hess ( HES) is up $0.84 (1.6%) to $54.23 on average volume Thus far, 2.6 million shares of Hess exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $53.84-$54.75 after having opened the day at $54.10 as compared to the previous trading day's close of $53.39.

Hess Corporation, together with its subsidiaries, operates as an integrated energy company. The company operates in two segments, Exploration and Production (E&P) and Marketing and Refining (M&R). Hess has a market cap of $18.0 billion and is part of the basic materials sector. The company has a P/E ratio of 14.2, below the S&P 500 P/E ratio of 17.7. Shares are down 6.0% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Hess a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Hess as a hold. The company's strongest point has been its expanding profit margins. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. Get the full Hess Ratings Report now.

3. As of noon trading, Baker Hughes ( BHI) is up $0.36 (0.9%) to $41.95 on light volume Thus far, 1.8 million shares of Baker Hughes exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $41.15-$42.25 after having opened the day at $41.40 as compared to the previous trading day's close of $41.59.

Baker Hughes Incorporated supplies oilfield services, products, and technology services and systems to the oil and natural gas industry worldwide. Baker Hughes has a market cap of $18.7 billion and is part of the basic materials sector. The company has a P/E ratio of 13.3, below the S&P 500 P/E ratio of 17.7. Shares are down 12.5% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Baker Hughes a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Baker Hughes as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Baker Hughes Ratings Report now.

2. As of noon trading, Valero Energy Corporation ( VLO) is up $0.56 (2.0%) to $28.76 on light volume Thus far, 2.8 million shares of Valero Energy Corporation exchanged hands as compared to its average daily volume of 9.0 million shares. The stock has ranged in price between $28.23-$28.76 after having opened the day at $28.32 as compared to the previous trading day's close of $28.20.

Valero Energy Corporation operates as an independent petroleum refining and marketing company. The company operates through three segments: Refining, Ethanol, and Retail. Valero Energy Corporation has a market cap of $15.9 billion and is part of the basic materials sector. The company has a P/E ratio of 14.2, below the S&P 500 P/E ratio of 17.7. Shares are up 34.0% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Valero Energy Corporation a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates Valero Energy Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Valero Energy Corporation Ratings Report now.

1. As of noon trading, Schlumberger ( SLB) is up $0.76 (1.1%) to $69.53 on light volume Thus far, 2.8 million shares of Schlumberger exchanged hands as compared to its average daily volume of 5.8 million shares. The stock has ranged in price between $68.63-$69.84 after having opened the day at $68.65 as compared to the previous trading day's close of $68.77.

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. Schlumberger has a market cap of $93.1 billion and is part of the basic materials sector. The company has a P/E ratio of 17.0, below the S&P 500 P/E ratio of 17.7. Shares are up 2.7% year to date as of the close of trading on Friday. Currently there are 24 analysts that rate Schlumberger a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Schlumberger as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Schlumberger Ratings Report now.

If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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