For the third-time in as many days, dismal employment data helped sack the broad-based S&P 500 . With the ADP employment report and jobless claims figures both missing the mark earlier this week, it shouldn't have surprised anyone that March's non-farm payrolls increased by just 88,000 last month -- far below economists' estimates of 200,000. It was, in fact, the slowest job growth that we've witnessed in the past nine months.

If there were two positive takeaways from the employment report, it was that unemployment dropped to 7.6%, despite the sluggish job growth -- which was mainly a function of more people dropping out of the labor force --and the fact that January and February's job gains were revised higher.

That still wasn't enough to keep the S&P 500 from falling 6.70 points (-0.43%), to finish at 1,553.28. In spite of the readily-visible job market weakness, three companies drastically outperformed within the S&P 500 today; and they were all from the energy sector.


Oil and gas exploration and production (E&P) company Nabors Industries was today's biggest gainer, adding 5.9%, after it announced its intentions to add two new, independent members to its board of directors. Nabors' management has been under fire from its top shareholders, Pamplona Capital Management, which has been critical of Nabors' underperformance relative to its peers. The addition of two new board members should help align investors' interests with those of the company. In addition, Nabors announced early last month that it would begin paying a $0.04 quarterly dividend. These may be baby steps, but they're steps in the right direction for Nabors' shareholders.

The final two big gainers didn't have any company specific news that sent them rocketing higher today, but instead, relied on a very big rally in natural gas for their ascent. Following yesterday's data, which showed a 94-billion cubic foot reduction in natural gas inventories, spot natural gas prices jumped higher by better than 4%. That was enough of a propellant to send natural gas-heavy independent E&P companies like Cabot Oil & Gas and WPX Energy  higher by 5.1% and 5.2%, respectively.

Although I like the long-term prospects for natural gas, given its abundance in the U.S. and the current administration's desire to make the U.S. less reliant on foreign sources of oil, Cabot's valuation is becoming a bit of an eyesore. Cabot is now sitting on more than $1.05 billion in net debt, trades at 11 times sales, and is valued at a robust 28 times forward earnings. In short, it's not a current favorite of mine!

WPX, on the other hand, could offer some intrigue, as my Foolish colleague Tyler Crowe noted earlier this week. Tyler opined that WPX offers the cheapest natural gas reserves in the U.S. and could be a lucrative buyout candidate, because many of its oil assets are located in the highly desirable Bakken formation. It's difficult to argue against its reserves, but understandable why the company hasn't exploded higher, given that about three-quarters of its reserves are natural-gas based.

There are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report, "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer, and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

The article Today's 3 Best Stocks originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. The Motley Fool recommends Automatic Data Processing. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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