Chesapeake Energy Corp (CHK): 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

Chesapeake Energy ( CHK) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 0.7%. By the end of trading, Chesapeake Energy fell $0.31 (-1.6%) to $19.13 on average volume. Throughout the day, 9,482,529 shares of Chesapeake Energy exchanged hands as compared to its average daily volume of 12,007,200 shares. The stock ranged in price between $18.92-$19.55 after having opened the day at $19.41 as compared to the previous trading day's close of $19.44. Other companies within the Energy industry that declined today were: BMB Munai ( BMBM), down 29.7%, Genie Energy Ltd Common Stock B ( GNE), down 14.6%, Quicksilver Resources ( KWK), down 9.4% and ECA Marcellus Trust I ( ECT), down 8.8%.
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Chesapeake Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. The company also offers marketing, midstream, drilling, and other oilfield services. Chesapeake Energy has a market cap of $12.9 billion and is part of the basic materials sector. Shares are up 17.0% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Chesapeake Energy a buy, 1 analyst rates it a sell, and 17 rate it a hold.

TheStreet Ratings rates Chesapeake Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

On the positive front, GeoPetro Resources Company ( GPR), down 35.4%, Magnum Hunter Resources Corportion ( MHR), down 11.2%, Gastar Exploration ( GST), down 10.0% and Petroquest Energy ( PQ), down 9.0% , 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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