Declines From Exxon Mobil Corporation (XOM) Drive Down Energy Industry

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.

Exxon Mobil Corporation ( XOM) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day down 4.2%. By the end of trading, Exxon Mobil Corporation fell $2.50 (-2.8%) to $86.49 on heavy volume. Throughout the day, 19.3 million shares of Exxon Mobil Corporation exchanged hands as compared to its average daily volume of 12.6 million shares. The stock ranged in price between $86.27-$88.67 after having opened the day at $88.29 as compared to the previous trading day's close of $88.99. Other companies within the Energy industry that declined today were: Halcon Resources ( HK), down 15.9%, Camac Energy ( CAK), down 14.9%, Magnum Hunter Resources Corportion ( MHR), down 11.4%, and PDC Energy ( PDCE), down 11.3%.
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Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products. The company also transports and sells crude oil, natural gas, and petroleum products. It has approximately 37,228 gross and 31,264 net operated wells. Exxon Mobil Corporation has a market cap of $399.75 billion and is part of the basic materials sector. The company has a P/E ratio of 9.2, below the S&P 500 P/E ratio of 17.7. Shares are up 2.8% year to date as of the close of trading on Friday. Currently there are five analysts that rate Exxon Mobil Corporation a buy, one analyst rates it a sell, and nine rate it a hold.

TheStreet Ratings rates Exxon Mobil Corporation as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, notable return on equity, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

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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