WES, EPD And PBR, Pushing Energy Industry Downward

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 84 points (0.6%) at 15,176 as of Tuesday, May 14, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 2,014 issues advancing vs. 928 declining with 109 unchanged.

The Energy industry currently sits up 0.7% versus the S&P 500, which is up 0.9%. Top gainers within the industry include Hess ( HES), up 2.6%, Marathon Oil ( MRO), up 2.7%, Eni SpA ( E), up 2.0%, EOG Resources ( EOG), up 1.9% and Marathon Petroleum ( MPC), up 1.8%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Western Gas Partners ( WES) is one of the companies pushing the Energy industry lower today. As of noon trading, Western Gas Partners is down $2.34 (-3.7%) to $60.90 on heavy volume Thus far, 2.8 million shares of Western Gas Partners exchanged hands as compared to its average daily volume of 158,500 shares. The stock has ranged in price between $60.80-$61.19 after having opened the day at $60.95 as compared to the previous trading day's close of $63.24.

Western Gas Partners, LP owns, operates, acquires, and develops midstream energy assets in east, west, and south Texas; the Rocky Mountains; and the Mid-Continent. Western Gas Partners has a market cap of $6.6 billion and is part of the basic materials sector. The company has a P/E ratio of 93.7, above the S&P 500 P/E ratio of 17.7. Shares are up 31.8% year to date as of the close of trading on Monday.

TheStreet Ratings rates Western Gas Partners as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Western Gas Partners Ratings Report now.

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2. As of noon trading, Enterprise Products Partners ( EPD) is down $0.40 (-0.7%) to $61.11 on light volume Thus far, 430,909 shares of Enterprise Products Partners exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $61.11-$61.56 after having opened the day at $61.56 as compared to the previous trading day's close of $61.51.

Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products, and petrochemicals in the United States and internationally. Enterprise Products Partners has a market cap of $56.1 billion and is part of the basic materials sector. The company has a P/E ratio of 21.9, above the S&P 500 P/E ratio of 17.7. Shares are up 23.1% year to date as of the close of trading on Monday.

TheStreet Ratings rates Enterprise Products Partners as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Enterprise Products Partners Ratings Report now.

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1. As of noon trading, Petroleo Brasileiro SA Petrobras ( PBR) is down $0.13 (-0.7%) to $18.71 on average volume Thus far, 6.6 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 16.9 million shares. The stock has ranged in price between $18.50-$18.87 after having opened the day at $18.77 as compared to the previous trading day's close of $18.84.

Petroleo Brasileiro S.A. operates as an integrated oil and gas company in Brazil and internationally. Petroleo Brasileiro SA Petrobras has a market cap of $123.1 billion and is part of the basic materials sector. The company has a P/E ratio of 11.1, below the S&P 500 P/E ratio of 17.7. Shares are down 3.1% year to date as of the close of trading on Monday.

TheStreet Ratings rates Petroleo Brasileiro SA Petrobras as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow. Get the full Petroleo Brasileiro SA Petrobras Ratings Report now.

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If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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