Chevron Corp (CVX): 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.

Chevron ( CVX) pushed the Energy industry higher today making it today's featured energy winner. The industry as a whole closed the day up 0.8%. By the end of trading, Chevron rose $1.21 (1.2%) to $105.17 on average volume. Throughout the day, 6.3 million shares of Chevron exchanged hands as compared to its average daily volume of 6.2 million shares. The stock ranged in a price between $104-$105.81 after having opened the day at $104.38 as compared to the previous trading day's close of $103.96. Other companies within the Energy industry that increased today were: McMoRan Exploration ( MMR), up 87%, Plains Exploration & Production Company ( PXP), up 23.4%, Cobalt International Energy ( CIE), up 18.6%, and GeoPetro Resources Company ( GPR), up 8%.
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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 $204.84 billion and is part of the basic materials sector. The company has a P/E ratio of 8.6, below the S&P 500 P/E ratio of 17.7. Shares are down 1.6% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Chevron a buy, no analysts rate it a sell, and two 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 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 negative front, BMB Munai ( BMBM), down 13.2%, New Concept Energy ( GBR), down 11.8%, Recovery Energy ( RECV), down 10.8%, and Longwei Petroleum Investment Holding Limite ( LPH), down 9.1%, were all laggards within the energy industry with Marathon Petroleum ( MPC) 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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