Chevron Corp (CVX): 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.

Chevron ( CVX) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day down 1.5%. By the end of trading, Chevron fell $1.60 (-1.5%) to $105.91 on average volume. Throughout the day, 5.6 million shares of Chevron exchanged hands as compared to its average daily volume of 5.7 million shares. The stock ranged in price between $105.88-$107.67 after having opened the day at $107.23 as compared to the previous trading day's close of $107.51. Other companies within the Energy industry that declined today were: Torch Energy Royalty ( TRU), down 21.2%, Callon Petroleum ( CPE), down 13.8%, BMB Munai ( BMBM), down 13.5%, and Ivanhoe Energy ( IVAN), down 9.4%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. Chevron has a market cap of $216.54 billion and is part of the basic materials sector. The company has a P/E ratio of nine, below the S&P 500 P/E ratio of 17.7. Shares are up 3.7% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Chevron a buy, no analysts rate it a sell, and three rate it a hold.

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

On the positive front, GMX Resources ( GMXR), up 35.4%, Cal Dive International ( DVR), up 12.4%, GeoGlobal Resources ( GGR), up 10.3%, and Gasco Energy ( GSX), up 6.8%, were all gainers within the energy industry with Energy Transfer Partners L.P ( ETP) 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).

FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!.
null

If you liked this article you might like

CEOs Are Dropping Like Flies

Total Reaches Agreement With Chevron for Gulf of Mexico Exploration

Stocks In Negative Territory as Chances for December Hike Surge

Energy Stocks Lead a Neutral Market Even After Oil Inventories Spike

Energy Takes a Backseat as Crude Oil Stabilizes Under $50