Encana Corp (ECA): Today's Featured Energy Winner

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.

Encana ( ECA) pushed the Energy industry higher today making it today's featured energy winner. The industry as a whole closed the day down 0.2%. By the end of trading, Encana rose $0.69 (4.0%) to $18.10 on heavy volume. Throughout the day, 6,922,651 shares of Encana exchanged hands as compared to its average daily volume of 4,163,500 shares. The stock ranged in a price between $17.47-$18.22 after having opened the day at $17.57 as compared to the previous trading day's close of $17.41. Other companies within the Energy industry that increased today were: Ivanhoe Energy ( IVAN), up 16.4%, Global Eagle Entertainment ( ENT), up 10.9%, Camac Energy ( CAK), up 12.8% and Tengasco ( TGC), up 2.5%.

04-Nov-05 CML Had conversation with Joe Murphy ARS Calgary. Appears that both EnCana and Petro Canada are interested in our Exec Risk capabilities. EnCana D&O is $200MM limit, $2.5MM premium and renews May 1, 2006 (Management Info Circular). Encana has a market cap of $12.9 billion and is part of the basic materials sector. Shares are down 11.8% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Encana a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Encana as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and weak operating cash flow.

On the negative front, Lone Pine Resources ( LPR), down 12.2%, Andatee China Marine Fuel Services Corporat ( AMCF), down 9.8%, Key Energy Services ( KEG), down 6.3% and Alon USA Partners ( ALDW), down 5.6% , were all laggards within the energy industry with Halliburton Company ( HAL) 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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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