4 Stocks Pushing The Energy Industry Lower

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

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 57 points (-0.4%) at 13,942 as of Monday, Feb. 25, 2013, 12:05 PM ET. The NYSE advances/declines ratio sits at 1,301 issues advancing vs. 1,576 declining with 144 unchanged.

The Energy industry currently sits down 0.4% versus the S&P 500, which is down 0.3%. On the negative front, top decliners within the industry include Tenaris ( TS), down 1.5%, Royal Dutch Shell ( RDS.B), down 1.0% and Anadarko Petroleum ( APC), down 0.8%. Top gainers within the industry include Occidental Petroleum Corporation ( OXY), up 1.0%, Ecopetrol S.A ( EC), up 0.9% and Total ( TOT), up 0.5%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. Marathon Oil ( MRO) is one of the companies pushing the Energy industry lower today. As of noon trading, Marathon Oil is down $0.72 (-2.1%) to $33.98 on average volume Thus far, 2.3 million shares of Marathon Oil exchanged hands as compared to its average daily volume of 5.3 million shares. The stock has ranged in price between $33.97-$34.96 after having opened the day at $34.94 as compared to the previous trading day's close of $34.71.

Marathon Oil Corporation operates as an energy company worldwide. The company operates in three segments: Exploration and Production, Oil Sands Mining, and Integrated Gas. Marathon Oil has a market cap of $24.3 billion and is part of the basic materials sector. The company has a P/E ratio of 14.0, below the S&P 500 P/E ratio of 17.7. Shares are up 12.1% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Marathon Oil a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Marathon Oil as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins 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. Get the full Marathon Oil Ratings Report now.

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3. As of noon trading, BP ( BP) is down $0.85 (-2.0%) to $40.98 on heavy volume Thus far, 6.1 million shares of BP exchanged hands as compared to its average daily volume of 6.2 million shares. The stock has ranged in price between $40.81-$41.46 after having opened the day at $41.17 as compared to the previous trading day's close of $41.83.

BP p.l.c. provides fuel for transportation, energy for heat and light, lubricants to engines, and petrochemicals products. BP has a market cap of $129.5 billion and is part of the basic materials sector. The company has a P/E ratio of 5.1, below the S&P 500 P/E ratio of 17.7. Shares are down 2.0% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate BP a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates BP as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full BP Ratings Report now.

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2. As of noon trading, Chesapeake Energy ( CHK) is down $0.95 (-4.6%) to $19.55 on heavy volume Thus far, 15.0 million shares of Chesapeake Energy exchanged hands as compared to its average daily volume of 14.4 million shares. The stock has ranged in price between $19.49-$20.24 after having opened the day at $20.18 as compared to the previous trading day's close of $20.50.

Chesapeake Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. The company also offers marketing, midstream, drilling, and other oilfield services. Chesapeake Energy has a market cap of $13.4 billion and is part of the basic materials sector. The company has a P/E ratio of 33.1, above the S&P 500 P/E ratio of 17.7. Shares are up 21.5% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Chesapeake Energy a buy, no analysts rate it a sell, and 17 rate it a hold.

TheStreet Ratings rates Chesapeake Energy as a hold. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Get the full Chesapeake Energy Ratings Report now.

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1. As of noon trading, Valero Energy Corporation ( VLO) is down $0.76 (-1.6%) to $45.31 on light volume Thus far, 3.0 million shares of Valero Energy Corporation exchanged hands as compared to its average daily volume of 9.0 million shares. The stock has ranged in price between $45.25-$46.50 after having opened the day at $46.18 as compared to the previous trading day's close of $46.07.

Valero Energy Corporation operates as an independent petroleum refining and marketing company. The company operates through three segments: Refining, Ethanol, and Retail. Valero Energy Corporation has a market cap of $25.2 billion and is part of the basic materials sector. The company has a P/E ratio of 12.1, below the S&P 500 P/E ratio of 17.7. Shares are up 35.0% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Valero Energy Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Valero Energy Corporation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Valero Energy Corporation Ratings Report now.

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If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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