Chesapeake Energy Corp (CHK): Today's Featured Energy Winner

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.

Chesapeake Energy ( CHK) pushed the Energy industry higher today making it today's featured energy winner. The industry as a whole closed the day up 1.7%. By the end of trading, Chesapeake Energy rose $1.11 (5.6%) to $20.85 on average volume. Throughout the day, 18 million shares of Chesapeake Energy exchanged hands as compared to its average daily volume of 14.6 million shares. The stock ranged in a price between $19.55-$20.86 after having opened the day at $19.79 as compared to the previous trading day's close of $19.74. Other companies within the Energy industry that increased today were: GMX Resources ( GMXR), up 24.5%, HyperDynamics Corporation ( HDY), up 18%, PostRock Energy ( PSTR), up 11.8%, and Quicksilver Resources ( KWK), up 10.8%.
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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 $13.02 billion and is part of the basic materials sector. Shares are up 18.8% year to date as of the close of trading on Wednesday. Currently there are nine 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 strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins 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 weak operating cash flow.

On the negative front, Gasco Energy ( GSX), down 36.1%, Royale Energy ( ROYL), down 9.6%, GeoGlobal Resources ( GGR), down 8.8%, and Petrobras Argentina ( PZE), down 4.3%, were all laggards within the energy industry with Noble Corporation ( NE) being today's energy industry laggard.

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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