5 Stocks Pulling The 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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 62 points (-0.4%) at 15,060 as of Wednesday, June 12, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 760 issues advancing vs. 2,254 declining with 88 unchanged.

The Energy industry currently sits down 0.38 versus the S&P 500, which is down 0.61. On the negative front, top decliners within the industry include Eni SpA ( E), down 1.06, PetroChina ( PTR), down 0.99 and Ecopetrol S.A ( EC), down 1.17.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. Canadian Natural Resources ( CNQ) is one of the companies pushing the Energy industry lower today. As of noon trading, Canadian Natural Resources is down $0.62 (-2.1%) to $28.27 on average volume Thus far, 1.4 million shares of Canadian Natural Resources exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $28.17-$29.18 after having opened the day at $29.05 as compared to the previous trading day's close of $28.89.

Canadian Natural Resources Limited engages in the exploration, development, production and marketing of crude oil, natural gas liquids, and natural gas. Canadian Natural Resources has a market cap of $31.9 billion and is part of the basic materials sector. The company has a P/E ratio of 19.5, above the S&P 500 P/E ratio of 17.7. Shares are up 0.5% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Canadian Natural Resources a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Canadian Natural Resources as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Get the full Canadian Natural Resources Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

4. As of noon trading, Petroleo Brasileiro SA Petrobras ( PBR.A) is down $0.32 (-1.8%) to $17.08 on average volume Thus far, 3.1 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 7.0 million shares. The stock has ranged in price between $17.04-$17.63 after having opened the day at $17.55 as compared to the previous trading day's close of $17.39.

Petroleo Brasileiro S.A. - Petrobras operates as an integrated oil and gas company in Brazil and internationally. Petroleo Brasileiro SA Petrobras has a market cap of $115.5 billion and is part of the basic materials sector. The company has a P/E ratio of 7.1, below the S&P 500 P/E ratio of 17.7. Shares are down 9.9% 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 attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full Petroleo Brasileiro SA Petrobras Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

3. As of noon trading, Kinder Morgan ( KMI) is down $0.55 (-1.4%) to $37.64 on average volume Thus far, 1.8 million shares of Kinder Morgan exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $37.57-$38.59 after having opened the day at $38.50 as compared to the previous trading day's close of $38.19.

Kinder Morgan, Inc. owns and operates energy transportation and storage assets in the United States and Canada. The company operates in six segments: Natural Gas Pipelines, Products Pipelines KMP, CO2 KMP, Terminals KMP, Kinder Morgan Canada KMP, and Other. Kinder Morgan has a market cap of $40.3 billion and is part of the basic materials sector. The company has a P/E ratio of 63.7, above the S&P 500 P/E ratio of 17.7. Shares are up 8.1% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Kinder Morgan a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Kinder Morgan as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Kinder Morgan Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, BP ( BP) is down $0.34 (-0.8%) to $42.75 on average volume Thus far, 2.1 million shares of BP exchanged hands as compared to its average daily volume of 5.6 million shares. The stock has ranged in price between $42.74-$43.37 after having opened the day at $43.34 as compared to the previous trading day's close of $43.09.

BP p.l.c. provides fuel for transportation, energy for heat and light, lubricants to engines, and petrochemicals products. BP has a market cap of $137.5 billion and is part of the basic materials sector. The company has a P/E ratio of 432.8, above the S&P 500 P/E ratio of 17.7. Shares are up 3.5% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate BP a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates BP as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins. Get the full BP Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, Chevron ( CVX) is down $1.40 (-1.1%) to $120.05 on average volume Thus far, 2.7 million shares of Chevron exchanged hands as compared to its average daily volume of 6.5 million shares. The stock has ranged in price between $119.93-$122.73 after having opened the day at $122.32 as compared to the previous trading day's close of $121.45.

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. The company operates in two segments, Upstream and Downstream. Chevron has a market cap of $237.8 billion and is part of the basic materials sector. The company has a P/E ratio of 9.3, below the S&P 500 P/E ratio of 17.7. Shares are up 12.3% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Chevron a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Chevron as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Chevron Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 3 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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