5 Energy Stocks Dragging The Industry Down

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 57 points (-0.3%) at 16,357 as of Wednesday, Jan. 22, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,698 issues advancing vs. 1,213 declining with 185 unchanged.

The Energy industry currently sits up 0.4% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the industry include Penn West Petroleum ( PWE), down 8.4%, Schlumberger ( SLB), down 0.6% and Statoil ASA ( STO), down 0.6%. Top gainers within the industry include Southwestern Energy Company ( SWN), up 3.4%, Anadarko Petroleum ( APC), up 2.4%, Petroleo Brasileiro SA Petrobras ( PBR), up 1.6%, Royal Dutch Shell ( RDS.B), up 1.2% and Halliburton Company ( HAL), up 0.8%.

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

5. Seadrill ( SDRL) is one of the companies pushing the Energy industry lower today. As of noon trading, Seadrill is down $0.74 (-1.8%) to $40.10 on average volume. Thus far, 1.4 million shares of Seadrill exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $40.07-$41.03 after having opened the day at $40.94 as compared to the previous trading day's close of $40.84.

Seadrill Limited provides offshore drilling services to the oil and gas industry worldwide. The company operates in three segments: Floaters, Jack-up Rigs, and Tender Rigs. Seadrill has a market cap of $18.8 billion and is part of the basic materials sector. The company has a P/E ratio of 8.4, below the S&P 500 P/E ratio of 17.7. Shares are down 0.6% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Seadrill a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Seadrill as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, compelling growth in net income, good cash flow from operations 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 Seadrill 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, Apache Corporation ( APA) is down $0.87 (-1.0%) to $83.62 on average volume. Thus far, 1.0 million shares of Apache Corporation exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $83.36-$85.22 after having opened the day at $84.88 as compared to the previous trading day's close of $84.49.

Apache Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. Apache Corporation has a market cap of $33.7 billion and is part of the basic materials sector. The company has a P/E ratio of 12.6, below the S&P 500 P/E ratio of 17.7. Shares are down 1.7% year-to-date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Apache Corporation a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Apache Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, expanding profit margins, good cash flow from operations and increase in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Apache Corporation 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, Phillips 66 ( PSX) is down $0.65 (-0.8%) to $76.25 on light volume. Thus far, 754,776 shares of Phillips 66 exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $76.09-$77.60 after having opened the day at $77.30 as compared to the previous trading day's close of $76.90.

Phillips 66 operates as an independent downstream energy company. The company operates in three segments: Refining and Marketing (R&M), Midstream, and Chemicals. Phillips 66 has a market cap of $45.6 billion and is part of the basic materials sector. The company has a P/E ratio of 13.2, below the S&P 500 P/E ratio of 17.7. Shares are down 0.3% year-to-date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Phillips 66 a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Phillips 66 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 notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and poor profit margins. Get the full Phillips 66 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, Marathon Petroleum ( MPC) is down $1.20 (-1.4%) to $85.12 on light volume. Thus far, 776,097 shares of Marathon Petroleum exchanged hands as compared to its average daily volume of 3.7 million shares. The stock has ranged in price between $85.06-$86.91 after having opened the day at $86.85 as compared to the previous trading day's close of $86.33.

Marathon Petroleum Corporation, together with its subsidiaries, engages in refining, transporting, and marketing petroleum products primarily in the United States. It operates through Refining & Marketing, Speedway, and Pipeline Transportation segments. Marathon Petroleum has a market cap of $25.7 billion and is part of the basic materials sector. The company has a P/E ratio of 12.5, below the S&P 500 P/E ratio of 17.7. Shares are down 5.9% year-to-date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Marathon Petroleum a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Marathon Petroleum as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Marathon Petroleum 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, Valero Energy Corporation ( VLO) is down $0.89 (-1.7%) to $51.00 on light volume. Thus far, 1.5 million shares of Valero Energy Corporation exchanged hands as compared to its average daily volume of 8.7 million shares. The stock has ranged in price between $51.00-$51.97 after having opened the day at $51.51 as compared to the previous trading day's close of $51.89.

Valero Energy Corporation operates as an independent petroleum refining and marketing company. The company operates through three segments: Refining, Ethanol, and Retail. Valero Energy Corporation has a market cap of $27.7 billion and is part of the basic materials sector. The company has a P/E ratio of 11.6, below the S&P 500 P/E ratio of 17.7. Shares are up 3.0% year-to-date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Valero Energy Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Valero Energy Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Valero Energy Corporation 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 5 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).

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