Noble Corporation (NE): 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.

Noble Corporation ( NE) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 1.7%. By the end of trading, Noble Corporation fell 66 cents (-1.9%) to $34.84 on average volume. Throughout the day, 3.8 million shares of Noble Corporation exchanged hands as compared to its average daily volume of four million shares. The stock ranged in price between $34.72-$35.55 after having opened the day at $35.48 as compared to the previous trading day's close of $35.50. Other companies within the Energy industry that declined today were: 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%.
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Noble Corporation operates as an offshore drilling contractor for the oil and gas industry. The company offers contract drilling services for oil and gas wells. Noble Corporation has a market cap of $8.99 billion and is part of the basic materials sector. The company has a P/E ratio of 17.3, below the S&P 500 P/E ratio of 17.7. Shares are up 2% year to date as of the close of trading on Wednesday. Currently there are 22 analysts that rate Noble Corporation a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Noble Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, GMX Resources ( GMXR), up 24.5%, HyperDynamics Corporation ( HDY), up 18%, PostRock Energy ( PSTR), up 11.8%, and Quicksilver Resources ( KWK), up 10.8%, 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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