3 Stocks Pulling The Energy Industry Downward

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 36 points (0.3%) at 14,562 as of Thursday, March 28, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,626 issues advancing vs. 1,256 declining with 162 unchanged.

The Energy industry currently is unchanged today versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the industry include Royal Dutch Shell ( RDS.A), down 0.6%, Ecopetrol S.A ( EC), down 0.6% and Total ( TOT), down 0.3%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Petroleo Brasileiro SA Petrobras ( PBR.A) is one of the companies pushing the Energy industry lower today. As of noon trading, Petroleo Brasileiro SA Petrobras is down $0.26 (-1.4%) to $18.05 on light volume Thus far, 2.6 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 9.6 million shares. The stock has ranged in price between $18.05-$18.38 after having opened the day at $18.37 as compared to the previous trading day's close of $18.31.

Petroleo Brasileiro S.A. operates as an integrated oil and gas company in Brazil and internationally. Petroleo Brasileiro SA Petrobras has a market cap of $120.2 billion and is part of the basic materials sector. The company has a P/E ratio of 7.1, below the S&P 500 P/E ratio of 17.7. Shares are down 5.2% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Petroleo Brasileiro SA Petrobras as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins. Get the full Petroleo Brasileiro SA Petrobras Ratings Report now.

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2. As of noon trading, Anadarko Petroleum ( APC) is down $0.62 (-0.7%) to $88.14 on light volume Thus far, 1.1 million shares of Anadarko Petroleum exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $87.80-$89.20 after having opened the day at $89.00 as compared to the previous trading day's close of $88.76.

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of natural gas, crude oil, condensate, and natural gas liquids (NGLs) in the United States and internationally. Anadarko Petroleum has a market cap of $44.5 billion and is part of the basic materials sector. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are up 19.4% year to date as of the close of trading on Wednesday. Currently there are 21 analysts that rate Anadarko Petroleum a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Anadarko Petroleum as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, increase in stock price during the past year, good cash flow from operations, expanding profit margins and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Anadarko Petroleum Ratings Report now.

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1. As of noon trading, BP ( BP) is down $0.22 (-0.5%) to $42.04 on average volume Thus far, 2.7 million shares of BP exchanged hands as compared to its average daily volume of 7.3 million shares. The stock has ranged in price between $41.85-$42.41 after having opened the day at $42.33 as compared to the previous trading day's close of $42.26.

BP p.l.c. provides fuel for transportation, energy for heat and light, lubricants to engines, and petrochemicals products. BP has a market cap of $135.0 billion and is part of the basic materials sector. The company has a P/E ratio of 423.2, above the S&P 500 P/E ratio of 17.7. Shares are up 1.5% year to date as of the close of trading on Wednesday. Currently there are 7 analysts that rate BP a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates BP as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations 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 poor profit margins. Get the full BP Ratings Report now.

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If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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