Why Vanguard Natural Resources (VNR) Stock is Sliding Today

NEW YORK (TheStreet) -- Shares of Vanguard Natural Resources (VNR) are down by 4.59% to $1.97 in midday trading on Wednesday, as some energy and related stocks take a hit from the slump in oil prices.

Crude oil (WTI) is lower by 1.19% to $41.67 per barrel this afternoon and Brent crude is slipping by 1.23% to $44.14 per barrel.

Vanguard Natural Resources is a Houston-based limited liability company focused on the acquisition and development of oil and natural gas properties in the U.S.

The commodity is trading in the red today on concerns that Sunday's meeting in Doha between the world's oil producers will not do much to reduce the global oversupply, Reuters reports. Oil producers are coming together to discuss freezing output.

A strong dollar and a build in U.S. crude inventories are also pressuring oil prices.

U.S. crude stockpiles grew by 6.6 million barrels last week, a report from the EIA showed. The total storage now stands at 536.5 million barrels.

Saudi oil minister Ali al-Naimi confirmed his country's position that a production freeze is not an option, Reuters reports.

"Forget about this topic," al-Naimi told the al-Hayat newspaper.

Separately, TheStreet Ratings has set a "sell" rating and a score of D on Vanguard Natural Resources stock. This is driven by a few notable weaknesses, which TheStreet Ratings believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: VNR


More from Markets

Jim Cramer on Larry Kudlow, Tariffs, Nucor, IBM and Domino's Pizza

Jim Cramer on Larry Kudlow, Tariffs, Nucor, IBM and Domino's Pizza

Dow Falls on Trade Worries but IBM Rises as Earnings Beat Forecasts

Dow Falls on Trade Worries but IBM Rises as Earnings Beat Forecasts

What Is Comparative Advantage?

What Is Comparative Advantage?

Danaher Shares Surge After Dental Spinoff Plan, Solid Q2 Earnings

Danaher Shares Surge After Dental Spinoff Plan, Solid Q2 Earnings

IBM Shares Jump After 'Strategic Imperatives' Drive Q2 Earnings Beat

IBM Shares Jump After 'Strategic Imperatives' Drive Q2 Earnings Beat