Dril-Quip Inc. (DRQ): Today's Featured Energy Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Dril-Quip ( DRQ) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Dril-Quip fell $1.25 (-1.2%) to $103.91 on average volume. Throughout the day, 369,711 shares of Dril-Quip exchanged hands as compared to its average daily volume of 391,600 shares. The stock ranged in price between $103.80-$106.16 after having opened the day at $105.16 as compared to the previous trading day's close of $105.16. Other companies within the Energy industry that declined today were: Andatee China Marine Fuel Services Corporat ( AMCF), down 12.7%, Double Eagle Petroleum Company ( DBLE), down 6.5%, Lone Pine Resources ( LPR), down 6.0% and Syntroleum Corporation ( SYNM), down 5.6%.

Dril-Quip, Inc. designs, manufactures, sells, and services engineered offshore drilling and production equipment for use in deepwater, harsh environment, and severe service applications worldwide. It operates in three segments: Western Hemisphere, Eastern Hemisphere, and Asia-Pacific. Dril-Quip has a market cap of $4.2 billion and is part of the basic materials sector. Shares are up 44.0% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Dril-Quip a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Dril-Quip as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, Gastar Exploration ( GST), up 10.4%, Barnwell Industries ( BRN), up 10.1%, Ivanhoe Energy ( IVAN), up 9.3% and BPZ Resources ( BPZ), up 9.1% , were all gainers within the energy industry with Occidental Petroleum Corporation ( OXY) being today's featured energy industry leader.

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).

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