Statoil ASA (STO): 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

Statoil ASA ( STO) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 1.1%. By the end of trading, Statoil ASA fell $0.76 (-3.1%) to $23.45 on heavy volume. Throughout the day, 2,928,194 shares of Statoil ASA exchanged hands as compared to its average daily volume of 1,648,200 shares. The stock ranged in price between $23.24-$23.52 after having opened the day at $23.48 as compared to the previous trading day's close of $24.21. Other companies within the Energy industry that declined today were: Halcon Resources ( HK), down 9.3%, Eagle Rock Energy Partners ( EROC), down 7.4%, LRR Energy ( LRE), down 6.6% and EV Energy Partner ( EVEP), down 5.4%.
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Statoil ASA, an integrated energy company, engages in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products in Norway and internationally. Statoil ASA has a market cap of $78.1 billion and is part of the basic materials sector. The company has a P/E ratio of 8.1, below the S&P 500 P/E ratio of 17.7. Shares are down 3.3% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Statoil ASA a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Statoil ASA as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the positive front, GeoPetro Resources Company ( GPR), down 20.0%, Hornbeck Offshore Services ( HOS), down 14.6%, Renewable Energy Group ( REGI), down 14.5% and GeoGlobal Resources ( GGR), down 12.9% , were all gainers within the energy industry with Valero Energy Corporation ( VLO) 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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