Chesapeake Energy Corp (CHK): Today's Featured Energy Winner

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 higher today making it today's featured energy winner. The industry as a whole closed the day down 1.2%. By the end of trading, Chesapeake Energy rose $0.25 (1.2%) to $21.10 on heavy volume. Throughout the day, 26,170,930 shares of Chesapeake Energy exchanged hands as compared to its average daily volume of 11,676,800 shares. The stock ranged in a price between $20.95-$21.63 after having opened the day at $21.26 as compared to the previous trading day's close of $20.85. Other companies within the Energy industry that increased today were: Recon Technology ( RCON), up 32.5%, North American Energy Partners Incorporate ( NOA), up 18.6%, Forbes Energy Services ( FES), up 7.8% and Andatee China Marine Fuel Services Corporat ( AMCF), up 6.1%.
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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 $13.9 billion and is part of the basic materials sector. Shares are up 25.5% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Chesapeake Energy a buy, 1 analyst rates it a sell, and 18 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, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, generally higher debt management risk and poor profit margins.

On the negative front, GeoPetro Resources Company ( GPR), down 25.0%, Torch Energy Royalty ( TRU), down 23.3%, Whiting USA Trust I ( WHX), down 14.9% and FX Energy ( FXEN), down 13.9% , were all laggards within the energy industry with Schlumberger ( SLB) being today's energy industry laggard.

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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