Chevron Corp (CVX): 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.

Chevron ( CVX) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day down 2.4%. By the end of trading, Chevron fell $2.42 (-2.1%) to $113.54 on average volume. Throughout the day, 7.3 million shares of Chevron exchanged hands as compared to its average daily volume of 5.8 million shares. The stock ranged in price between $113.50-$117.34 after having opened the day at $116.50 as compared to the previous trading day's close of $115.96. Other companies within the Energy industry that declined today were: Global Geophysical Services ( GGS), down 33.8%, GMX Resources ( GMXR), down 21.6%, BMB Munai ( BMBM), down 16.7%, and Quicksilver Resources ( KWK), down 13%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. Chevron has a market cap of $225.06 billion and is part of the basic materials sector. The company has a P/E ratio of 8.6, below the S&P 500 P/E ratio of 17.7. Shares are up 6.3% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Chevron a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Chevron as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Energy Takes a Backseat as Crude Oil Stabilizes Under $50

Energy M&A Weekly: More Midstream IPOs Expected in 2017

Here's Where Wall Street Stands

Attorneys General Investigate Thousands of Hurricane Price-Gouging Claims

Walmart, Starbucks Respond to Hurricanes the Best -- Others? Not So Much