Chesapeake Energy Corp (CHK): 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.

Chesapeake Energy ( CHK) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day down 1.3%. By the end of trading, Chesapeake Energy fell $1.13 (-5.1%) to $21.04 on average volume. Throughout the day, 20.4 million shares of Chesapeake Energy exchanged hands as compared to its average daily volume of 14.9 million shares. The stock ranged in price between $20.79-$21.95 after having opened the day at $21.79 as compared to the previous trading day's close of $22.17. Other companies within the Energy industry that declined today were: Harvest Natural Resources ( HNR), down 32.6%, ECA Marcellus Trust I ( ECT), down 26.8%, GMX Resources ( GMXR), down 15.5%, and GeoPetro Resources Company ( GPR), down 11.1%.
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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 $14.99 billion and is part of the basic materials sector. Shares are up 33.4% year to date as of the close of trading on Monday. 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 and expanding profit margins. 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 positive front, BMB Munai ( BMBM), up 22.8%, Gastar Exploration ( GST), up 19.1%, Abraxas Petroleum Corporation ( AXAS), up 4.9%, and TransMontaigne Partners L.P ( TLP), up 4.5%, were all gainers within the energy industry with Energy Transfer Equity ( ETE) 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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