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Chesapeake Energy Corp (CHK): Today's Featured Basic Materials Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Chesapeake Energy ( CHK) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day down 1.7%. By the end of trading, Chesapeake Energy fell $1.39 (-6.8%) to $19.11 on heavy volume. Throughout the day, 29.1 million shares of Chesapeake Energy exchanged hands as compared to its average daily volume of 14.4 million shares. The stock ranged in price between $19.09-$20.24 after having opened the day at $20.18 as compared to the previous trading day's close of $20.50. Other companies within the Basic Materials sector that declined today were: Global Geophysical Services ( GGS), down 33.8%, GMX Resources ( GMXR), down 21.6%, BMB Munai ( BMBM), down 16.7%, and Quicksilver Resources ( KWK), down 13%.

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Chesapeake Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. The company also offers marketing, midstream, drilling, and other oilfield services. Chesapeake Energy has a market cap of $13.42 billion and is part of the energy industry. The company has a P/E ratio of 33.1, above the S&P 500 P/E ratio of 17.7. Shares are up 21.5% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Chesapeake Energy a buy, no analysts rate it a sell, and 17 rate it a hold.

TheStreet Ratings rates Chesapeake Energy as a hold. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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