Hess Corp (HES): Today's Featured Energy Winner

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.

Hess ( HES) pushed the Energy industry higher today making it today's featured energy winner. The industry as a whole closed the day up 0.5%. By the end of trading, Hess rose 55 cents (1.1%) to $50.10 on light volume. Throughout the day, 1.9 million shares of Hess exchanged hands as compared to its average daily volume of 3.5 million shares. The stock ranged in a price between $49.40-$50.12 after having opened the day at $49.94 as compared to the previous trading day's close of $49.55. Other companies within the Energy industry that increased today were: GeoGlobal Resources ( GGR), up 12.3%, Cubic Energy ( QBC), up 12%, Isramco ( ISRL), up 10.1%, and Endeavour International ( END), up 8.2%.
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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 $17.24 billion and is part of the basic materials sector. The company has a P/E ratio of 10.1, below the S&P 500 P/E ratio of 17.7. Shares are down 12.8% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate Hess a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Hess as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and generally higher debt management risk.

On the negative front, Torch Energy Royalty ( TRU), down 9.4%, Recon Technology ( RCON), down 6.7%, HyperDynamics Corporation ( HDY), down 5.6%, and Gastar Exploration ( GST), down 5.6%, were all laggards within the energy industry with Petroleo Brasileiro SA Petrobras ( PBR.A) being today's energy industry laggard.

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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