Seadrill Ltd (SDRL): 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.

Seadrill ( SDRL) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Seadrill fell 82 cents (-2.1%) to $37.66 on average volume. Throughout the day, 2.6 million shares of Seadrill exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $37.60-$37.89 after having opened the day at $37.83 as compared to the previous trading day's close of $38.48. Other companies within the Energy industry that declined today were: Andatee China Marine Fuel Services Corporat ( AMCF), down 15.1%, Houston American Energy Corporation ( HUSA), down 8.5%, Mexco Energy Corporation ( MXC), down 8.2%, and Gastar Exploration ( GST), down 7.3%.
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Seadrill Limited provides offshore drilling services to the oil and gas industry worldwide. Its services include drilling, completion, and maintenance of offshore wells; production drilling and well maintenance; and well services. Seadrill has a market cap of $17.87 billion and is part of the basic materials sector. The company has a P/E ratio of 12.9, below the S&P 500 P/E ratio of 17.7. Shares are up 3.5% year to date as of the close of trading on Monday. Currently there are two analysts that rate Seadrill a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Seadrill as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, increase in stock price during the past year, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, BMB Munai ( BMBM), up 19.1%, New Concept Energy ( GBR), up 18.5%, Ivanhoe Energy ( IVAN), up 8.3%, and Denbury Resources ( DNR), up 5.2%, were all gainers within the energy industry with Cameron International Corporation ( CAM) 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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