Encana Corp (ECA): 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

Encana ( ECA) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 1.5%. By the end of trading, Encana fell $0.20 (-1.1%) to $18.29 on heavy volume. Throughout the day, 7,886,706 shares of Encana exchanged hands as compared to its average daily volume of 5,230,300 shares. The stock ranged in price between $18.20-$18.52 after having opened the day at $18.49 as compared to the previous trading day's close of $18.49. Other companies within the Energy industry that declined today were: Gasco Energy ( GSX), down 21.4%, RPC ( RES), down 12.3%, Alon USA Partners ( ALDW), down 5.0% and New Concept Energy ( GBR), down 3.6%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Encana Corporation and its subsidiaries engage in the exploration for, development, production, and marketing of natural gas, oil, and natural gas liquids in Canada and the United States. Encana has a market cap of $13.8 billion and is part of the basic materials sector. Shares are down 6.4% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Encana as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, poor profit margins and generally high debt management risk.

On the positive front, FX Energy ( FXEN), down 27.0%, Magnum Hunter Resources Corportion ( MHR), down 15.3%, Samson Oil & Gas ( SSN), down 11.3% and Cal Dive International ( DVR), down 10.1% , were all gainers within the energy industry with Halliburton Company ( HAL) 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
null

If you liked this article you might like

Finding Bullish and Bearish Market Reversals

Parsley Energy Picks Up Permian Assets From Apache, Others: Source

'Mad Money' Lightning Round: Vodafone, Encana, Arconic, AdvanSix

Retail, Politics and Bonds Signal Trend Changes: Cramer's 'Mad Money' Recap (Thursday 1/5/17)

Encana Shares Climb Thursday on Surprise Beat