Concho Resources Inc. (CXO): 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

Concho Resources ( CXO) pushed the Energy industry higher today making it today's featured energy winner. The industry as a whole closed the day down 0.5%. By the end of trading, Concho Resources rose $1.85 (2.2%) to $86.27 on average volume. Throughout the day, 1,499,914 shares of Concho Resources exchanged hands as compared to its average daily volume of 1,209,800 shares. The stock ranged in a price between $84.02-$86.43 after having opened the day at $84.02 as compared to the previous trading day's close of $84.42. Other companies within the Energy industry that increased today were: Torch Energy Royalty ( TRU), up 14.8%, Endeavour International ( END), up 8.1%, Magnum Hunter Resources Corportion ( MHR), up 7.8% and Swift Energy Company ( SFY), up 6.7%.
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Concho Resources Inc. operates as an independent oil and natural gas company in the United States. It engages in the acquisition, development, and exploration of oil and natural gas properties. The company principally operates in the Permian Basin region of southeast New Mexico and West Texas. Concho Resources has a market cap of $8.8 billion and is part of the basic materials sector. The company has a P/E ratio of 21.3, above the S&P 500 P/E ratio of 17.7. Shares are up 3.8% year to date as of the close of trading on Monday. Currently there are 15 analysts that rate Concho Resources a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Concho Resources as a buy. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Constellation Energy Partners ( CEP), down 8.0%, Oiltanking Partners ( OILT), down 7.1%, Camac Energy ( CAK), down 6.8% and Lone Pine Resources ( LPR), down 6.4% , were all laggards within the energy industry with Valero Energy Corporation ( VLO) 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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