Chevron Corp (CVX): Today's Favorite Energy Gainer

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.

Chevron ( CVX) pushed the Energy industry higher today making it today's featured energy winner. The industry as a whole closed the day down 0.2%. By the end of trading, Chevron rose $1.31 (1.1%) to $120.95 on average volume. Throughout the day, 6.1 million shares of Chevron exchanged hands as compared to its average daily volume of 5.5 million shares. The stock ranged in a price between $119.52-$121.15 after having opened the day at $119.96 as compared to the previous trading day's close of $119.64. Other companies within the Energy industry that increased today were: Torch Energy Royalty ( TRU), up 9.4%, Callon Petroleum ( CPE), up 9.2%, Penn Virginia Corporation ( PVA), up 9.2%, and Willbros Group ( WG), up 7.3%.
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Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. Chevron has a market cap of $230.48 billion and is part of the basic materials sector. The company has a P/E ratio of 8.9, below the S&P 500 P/E ratio of 17.7. Shares are up 10.6% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Chevron a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Chevron as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Royale Energy ( ROYL), down 11.7%, GeoPetro Resources Company ( GPR), down 11%, Syntroleum Corporation ( SYNM), down 7.8%, and KiOR ( KIOR), down 7.4%, were all laggards within the energy industry with Valero Energy Corporation ( VLO) 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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