The Basic Industries Sector Has Not Maintained QE Hype
NEW YORK ( TheStreet) -- In dissecting the basic industries sector you find divergences among the different industries. Below, I profile two stocks in the nonferrous mining industry, two in diversified chemical, and one stock each for agriculture products, fertilizers, gold mining, steel producers and building materials.
All nine stocks are components of the Materials Select Sector SPDR Fund (XLB), which ended September with a positive but overbought weekly chart profile while. XLB closed Wednesday above last week's low at $36.31, but a close this week below $36.58 shifts the weekly chart profile to negative.
Fundamentally www.ValuEngine.com shows the basic industries sector just 2.1% overvalued following benchmark revisions based upon new data for September. Nine of the remaining fifteen sectors are more overvalued.
Among the nine stocks I am covering today, five have buy ratings and four have hold ratings. Back on July 31 when I wrote
Trading the Undervalued Basic Materials Sector the sector was 14.7% undervalued, and six of these nine stocks had buy ratings and three had hold ratings.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts