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.
Ensco PLC Class A (
ESV) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 1.1%. By the end of trading, Ensco PLC Class A fell 74 cents (-1.2%) to $61.49 on average volume. Throughout the day, 2.9 million shares of Ensco PLC Class A exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $60.76-$62.64 after having opened the day at $62.46 as compared to the previous trading day's close of $62.23. Other companies within the Energy industry that declined today were:
GMX Resources (
GMXR), down 13.2%,
Endeavour International (
END), down 10.2%,
World Fuel Services Corporation (
INT), down 10.2%, and
GeoGlobal Resources (
GGR), down 10.1%.
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Ensco plc provides offshore contract drilling services to the oil and gas industry worldwide. Ensco PLC Class A has a market cap of $14.69 billion and is part of the basic materials sector. The company has a P/E ratio of 12.3, below the S&P 500 P/E ratio of 17.7. Shares are up 6.7% year to date as of the close of trading on Thursday. Currently there are 17 analysts that rate Ensco PLC Class A a buy, no analysts rate it a sell, and four rate it a hold.
TheStreet Ratings rates Ensco PLC Class A as a
buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
On the positive front,
Cabot Oil & Gas Corporation (
COG), up 11.1%,
ZaZa Energy (
ZAZA), up 9.4%,
Whiting USA Trust I (
WHX), up 9.3%, and
Bill Barrett Corporation (
BBG), up 8%, were all gainers within the energy industry with
National Oilwell Varco (
NOV) 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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