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.
Baker Hughes (
BHI) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole was unchanged today. By the end of trading, Baker Hughes fell $1 (-2.3%) to $42.01 on average volume. Throughout the day, 3.3 million shares of Baker Hughes exchanged hands as compared to its average daily volume of 4.2 million shares. The stock ranged in price between $41.93-$43.03 after having opened the day at $42.90 as compared to the previous trading day's close of $43.01. Other companies within the Energy industry that declined today were:
Cubic Energy (
QBC), down 8.6%,
Miller Energy Resources (
MILL), down 5.8%,
Bill Barrett Corporation (
BBG), down 4.9%, and
Saratoga Resources (
SARA), down 4.6%.
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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 $18.92 billion and is part of the basic materials sector. The company has a P/E ratio of 13.5, below the S&P 500 P/E ratio of 17.7. Shares are up 5.3% 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 15 rate it a hold.
TheStreet Ratings rates Baker Hughes as a
hold. 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 reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
On the positive front,
Andatee China Marine Fuel Services Corporat (
AMCF), up 46%,
GeoPetro Resources Company (
GPR), up 20.6%,
Gasco Energy (
GSX), up 16.8%, and
Crimson Exploration (
CXPO), up 11.8%, were all gainers within the energy industry with
Valero Energy Corporation (
VLO) 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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