3 Stocks Underperforming Today In The Energy Industry

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 up today with the Dow Jones Industrial Average ( ^DJI) trading down 3 points (0.0%) at 16,578 as of Thursday, May 1, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,778 issues advancing vs. 1,187 declining with 180 unchanged.

The Energy industry currently sits down 0.2% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the industry include Ecopetrol ( EC), down 3.1%, Cenovus Energy ( CVE), down 2.1%, Total ( TOT), down 0.9%, EOG Resources ( EOG), down 0.7% and Exxon Mobil Corporation ( XOM), down 0.6%. Top gainers within the industry include Marathon Petroleum ( MPC), up 3.1%, Valero Energy ( VLO), up 1.9%, Energy Transfer Partners ( ETP), up 1.5% and China Petroleum & Chemical ( SNP), up 1.0%.

TheStreet would like to highlight 3 stocks pushing the industry lower today:

3. Seadrill ( SDRL) is one of the companies pushing the Energy industry lower today. As of noon trading, Seadrill is down $0.63 (-1.8%) to $34.59 on light volume. Thus far, 1.5 million shares of Seadrill exchanged hands as compared to its average daily volume of 4.7 million shares. The stock has ranged in price between $34.51-$35.18 after having opened the day at $35.16 as compared to the previous trading day's close of $35.22.

Seadrill Limited, an offshore drilling contractor, 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 $16.5 billion and is part of the basic materials sector. The company has a P/E ratio of 6.0, below the S&P 500 P/E ratio of 17.7. Shares are down 14.3% year-to-date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Seadrill a buy, 2 analysts rate 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, expanding profit margins, good cash flow from operations and compelling growth in net income. 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.

2. As of noon trading, Petroleo Brasileiro SA Petrobras ( PBR.A) is down $0.08 (-0.5%) to $14.72 on light volume. Thus far, 2.5 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 11.7 million shares. The stock has ranged in price between $14.58-$14.95 after having opened the day at $14.80 as compared to the previous trading day's close of $14.80.

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 $97.4 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 up 0.8% year-to-date as of the close of trading on Wednesday.

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, 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 poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself. 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.

1. As of noon trading, BP ( BP) is down $0.28 (-0.6%) to $50.34 on light volume. Thus far, 1.6 million shares of BP exchanged hands as compared to its average daily volume of 5.3 million shares. The stock has ranged in price between $50.25-$50.57 after having opened the day at $50.56 as compared to the previous trading day's close of $50.62.

BP p.l.c. provides fuel for transportation, energy for heat and light, lubricants to engines, and petrochemicals products worldwide. BP has a market cap of $171.2 billion and is part of the basic materials sector. The company has a P/E ratio of 6.4, below 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 Wednesday. Currently there are 5 analysts that rate BP a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates BP as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, increase in stock price during the past year, 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 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.

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).

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