3 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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 34 points (0.2%) at 16,585 as of Friday, May 9, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,493 issues advancing vs. 1,448 declining with 155 unchanged.

The Energy industry currently sits down 0.7% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the industry include Dril-Quip ( DRQ), down 7.0%, Crescent Point Energy ( CPG), down 2.3%, Valero Energy ( VLO), down 2.1%, Tenaris ( TS), down 1.8% and Phillips 66 ( PSX), down 1.4%. Top gainers within the industry include Gulfport Energy ( GPOR), up 3.5%, China Petroleum & Chemical ( SNP), up 1.0% and PetroChina ( PTR), up 0.5%.

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

3. Encana ( ECA) is one of the companies pushing the Energy industry lower today. As of noon trading, Encana is down $0.51 (-2.2%) to $22.44 on average volume. Thus far, 3.4 million shares of Encana exchanged hands as compared to its average daily volume of 5.3 million shares. The stock has ranged in price between $22.36-$22.94 after having opened the day at $22.75 as compared to the previous trading day's close of $22.95.

Encana Corporation, together with its subsidiaries, is engaged in exploration for, development, production, and marketing of natural gas, oil, and natural gas liquids in Canada and the United States. Encana has a market cap of $17.5 billion and is part of the basic materials sector. Shares are up 27.1% year-to-date as of the close of trading on Thursday. Currently there are 7 analysts that rate Encana a buy, 1 analyst rates 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 expanding profit margins, notable return on equity and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk. Get the full Encana 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, Seadrill ( SDRL) is down $0.91 (-2.5%) to $35.06 on average volume. Thus far, 2.0 million shares of Seadrill exchanged hands as compared to its average daily volume of 4.6 million shares. The stock has ranged in price between $34.96-$35.52 after having opened the day at $35.52 as compared to the previous trading day's close of $35.97.

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 $16.6 billion and is part of the basic materials sector. Shares are down 12.4% year-to-date as of the close of trading on Thursday. 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.

1. As of noon trading, Royal Dutch Shell ( RDS.A) is down $0.78 (-1.0%) to $79.72 on average volume. Thus far, 1.3 million shares of Royal Dutch Shell exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $79.66-$79.97 after having opened the day at $79.92 as compared to the previous trading day's close of $80.50.

Royal Dutch Shell plc operates as an independent oil and gas company worldwide. The company explores for and extracts crude oil, natural gas, and natural gas liquids. Royal Dutch Shell has a market cap of $256.0 billion and is part of the basic materials sector. Shares are up 12.9% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates Royal Dutch Shell as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, increase in stock price during the past year 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 Royal Dutch Shell 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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