InterOil Corporation (IOC): 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

InterOil Corporation ( IOC) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 1.0%. By the end of trading, InterOil Corporation fell $1.25 (-1.5%) to $80.04 on light volume. Throughout the day, 313,837 shares of InterOil Corporation exchanged hands as compared to its average daily volume of 726,600 shares. The stock ranged in price between $79.83-$81.50 after having opened the day at $80.68 as compared to the previous trading day's close of $81.29. Other companies within the Energy industry that declined today were: TGC Industries ( TGE), down 8.3%, GeoPetro Resources Company ( GPR), down 5.0%, Constellation Energy Partners ( CEP), down 4.9% and Sunoco Logistics Partners ( SXL), down 3.6%.
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InterOil Corporation operates as an integrated oil and gas company in Papua New Guinea. The company operates in four segments: Upstream, Midstream, Downstream, and Corporate. InterOil Corporation has a market cap of $4.0 billion and is part of the basic materials sector. The company has a P/E ratio of 2715.0, above the S&P 500 P/E ratio of 17.7. Shares are up 46.4% year to date as of the close of trading on Friday.

TheStreet Ratings rates InterOil Corporation as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, premium valuation and weak operating cash flow.

On the positive front, FX Energy ( FXEN), down 15.7%, Petroleo Brasileiro SA Petrobras ( PBR), down 6.7%, EPL Oil & Gas ( EPL), down 5.5% and Crimson Exploration ( CXPO), down 5.3% , were all gainers within the energy industry with ConocoPhillips ( COP) 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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