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.

The Basic Materials sector as a whole closed the day down 3.7% versus the S&P 500, which was down 2.1%. Laggards within the Basic Materials sector included

Sonde Resources

(

SOQ

), down 19.2%,

Barnwell Industries

(

BRN

), down 2.0%,

Timberline Resources

(

TLR

), down 2.2%,

Pacific Booker Minerals

(

PBM

), down 2.7% and

Minco Gold

(

MGH

), down 4.8%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today:

China Petroleum & Chemical

(

SNP

) is one of the companies that pushed the Basic Materials sector lower today. China Petroleum & Chemical was down $1.70 (1.9%) to $86.09 on average volume. Throughout the day, 203,641 shares of China Petroleum & Chemical exchanged hands as compared to its average daily volume of 153,000 shares. The stock ranged in price between $85.77-$86.93 after having opened the day at $86.80 as compared to the previous trading day's close of $87.79.

China Petroleum & Chemical Corporation, an energy and chemical company, through its subsidiaries, is engaged in the oil and gas, and chemical operations in the People's Republic of China. China Petroleum & Chemical has a market cap of $100.7 billion and is part of the energy industry. Shares are up 6.8% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates China Petroleum & Chemical a buy, no analysts rate it a sell, and 2 rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates

China Petroleum & Chemical

as a

buy

. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on SNP go as follows:

  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Oil, Gas & Consumable Fuels industry average. The net income increased by 32.3% when compared to the same quarter one year prior, rising from $2,248.69 million to $2,974.25 million.
  • Net operating cash flow has significantly increased by 81.34% to $7,353.63 million when compared to the same quarter last year. In addition, CHINA PETROLEUM & CHEM CORP has also vastly surpassed the industry average cash flow growth rate of -5.04%.
  • The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.24 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

You can view the full analysis from the report here:

China Petroleum & Chemical Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close,

Timberline Resources

(

TLR

) was down $0.00 (2.2%) to $0.07 on average volume. Throughout the day, 254,569 shares of Timberline Resources exchanged hands as compared to its average daily volume of 202,400 shares. The stock ranged in price between $0.07-$0.08 after having opened the day at $0.07 as compared to the previous trading day's close of $0.07.

Timberline Resources has a market cap of $5.6 million and is part of the energy industry. Shares are down 58.9% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Sonde Resources

(

SOQ

) was another company that pushed the Basic Materials sector lower today. Sonde Resources was down $0.02 (19.2%) to $0.10 on average volume. Throughout the day, 37,864 shares of Sonde Resources exchanged hands as compared to its average daily volume of 39,100 shares. The stock ranged in price between $0.10-$0.11 after having opened the day at $0.11 as compared to the previous trading day's close of $0.12.

Sonde Resources has a market cap of $6.4 million and is part of the energy industry. Shares are down 83.5% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.