3 Stocks Dragging In The Energy Industry

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 79 points (0.5%) at 15,467 as of Wednesday, May 22, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,746 issues advancing vs. 1,183 declining with 133 unchanged.

The Energy industry currently sits up 0.2% versus the S&P 500, which is up 0.5%. On the negative front, top decliners within the industry include PetroChina ( PTR), down 1.14, Petroleo Brasileiro SA Petrobras ( PBR.A), down 1.16 and Royal Dutch Shell ( RDS.A), down 0.45.

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

3. Royal Dutch Shell ( RDS.B) is one of the companies pushing the Energy industry lower today. As of noon trading, Royal Dutch Shell is down $0.49 (-0.7%) to $70.39 on heavy volume Thus far, 2.1 million shares of Royal Dutch Shell exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $70.24-$71.06 after having opened the day at $70.68 as compared to the previous trading day's close of $70.88.

Royal Dutch Shell plc operates as an independent oil and gas company worldwide. The company explores for and extracts crude oil, natural gas, and natural gas liquids. Royal Dutch Shell has a market cap of $223.8 billion and is part of the basic materials sector. The company has a P/E ratio of 8.9, below the S&P 500 P/E ratio of 17.7. Shares are down 0.0% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Royal Dutch Shell as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, attractive valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Get the full Royal Dutch Shell Ratings Report now.

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2. As of noon trading, EOG Resources ( EOG) is down $0.80 (-0.6%) to $133.48 on average volume Thus far, 868,269 shares of EOG Resources exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $132.10-$135.53 after having opened the day at $134.32 as compared to the previous trading day's close of $134.28.

EOG Resources, Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of crude oil and natural gas. EOG Resources has a market cap of $36.9 billion and is part of the basic materials sector. The company has a P/E ratio of 49.7, above 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 Tuesday.

TheStreet Ratings rates EOG Resources as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, increase in net income 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 EOG Resources Ratings Report now.

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1. As of noon trading, Petroleo Brasileiro SA Petrobras ( PBR) is down $0.37 (-1.9%) to $18.60 on average volume Thus far, 10.9 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 16.4 million shares. The stock has ranged in price between $18.57-$19.12 after having opened the day at $18.91 as compared to the previous trading day's close of $18.97.

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 $123.3 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 2.6% year to date as of the close of trading on Tuesday.

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.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

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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