Seadrill Ltd (SDRL): 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

Seadrill ( SDRL) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole was unchanged today. By the end of trading, Seadrill fell $1.04 (-2.5%) to $39.87 on heavy volume. Throughout the day, 3,427,270 shares of Seadrill exchanged hands as compared to its average daily volume of 2,249,500 shares. The stock ranged in price between $39.79-$40.88 after having opened the day at $40.84 as compared to the previous trading day's close of $40.91. Other companies within the Energy industry that declined today were: Willbros Group ( WG), down 20.6%, KiOR ( KIOR), down 10.3%, Laredo Petroleum Holdings ( LPI), down 7.1% and Mexco Energy Corporation ( MXC), down 6.9%.
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Seadrill Limited provides offshore drilling services to the oil and gas industry worldwide. Its services include drilling, completion, and maintenance of offshore wells; production drilling and well maintenance; and well services. Seadrill has a market cap of $18.8 billion and is part of the basic materials sector. The company has a P/E ratio of 17.1, below the S&P 500 P/E ratio of 17.7. Shares are up 11.2% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Seadrill a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Seadrill as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, growth in earnings per share, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Adams Resources & Energy ( AE), down 15.8%, Penn Virginia Corporation ( PVA), down 8.9%, Syntroleum Corporation ( SYNM), down 8.2% and Emerald Oil ( EOX), down 7.1% , were all gainers within the energy industry with Range Resources Corporation ( RRC) 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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