Concho Resources Inc. (CXO): 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.

Concho Resources ( CXO) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Concho Resources fell $2.20 (-2.3%) to $93.96 on average volume. Throughout the day, 1.4 million shares of Concho Resources exchanged hands as compared to its average daily volume of 966,000 shares. The stock ranged in price between $93.82-$96.15 after having opened the day at $96.07 as compared to the previous trading day's close of $96.16. Other companies within the Energy industry that declined today were: Torch Energy Royalty ( TRU), down 17.5%, Zion Oil & Gas ( ZN), down 13.8%, KiOR ( KIOR), down 5.2%, and GMX Resources ( GMXR), down 5%.
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Concho Resources Inc., an independent oil and natural gas company, engages in the acquisition, exploration, and development of oil and natural gas properties in the United States. Its principal operating areas are located in the Permian Basin region of southeast New Mexico and west Texas. Concho Resources has a market cap of $10.1 billion and is part of the basic materials sector. The company has a P/E ratio of 36.3, above the S&P 500 P/E ratio of 17.7. Shares are up 19.8% year to date as of the close of trading on Tuesday. Currently there are 19 analysts that rate Concho Resources a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Concho Resources as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, HyperDynamics Corporation ( HDY), up 26.5%, Recon Technology ( RCON), up 17.9%, Pioneer Energy Services ( PES), up 13.3%, and Andatee China Marine Fuel Services Corporat ( AMCF), up 9.2%, were all gainers within the energy industry with Chesapeake Energy ( CHK) 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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