Ensco PLC Class A (ESV): 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.

Ensco PLC Class A ( ESV) pushed the Energy industry higher today making it today's featured energy winner. The industry as a whole closed the day down 0.3%. By the end of trading, Ensco PLC Class A rose $1.07 (1.9%) to $58.84 on average volume. Throughout the day, 3.2 million shares of Ensco PLC Class A exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in a price between $57.73-$58.96 after having opened the day at $57.91 as compared to the previous trading day's close of $57.77. Other companies within the Energy industry that increased today were: HyperDynamics Corporation ( HDY), up 8.9%, GeoPetro Resources Company ( GPR), up 8.3%, Cubic Energy ( QBC), up 6.9%, and Midstates Petroleum ( MPO), up 6.5%.
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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 $13.43 billion and is part of the basic materials sector. The company has a P/E ratio of 11, below the S&P 500 P/E ratio of 17.7. Shares are down 2.5% year to date as of the close of trading on Tuesday. 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, BMB Munai ( BMBM), down 17.2%, Gasco Energy ( GSX), down 10%, CVR Energy ( CVI), down 8.3%, and Endeavour International ( END), down 7.8%, were all laggards within the energy industry with Suncor Energy ( SU) 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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