NEW YORK ( TheStreet) -- Shares of Gulf Resources (Nasdaq: GURE) were gapping up Tuesday morning with an open price 11.8% higher than Friday's closing price. The stock closed at $2.62 Friday and opened today's trading at $2.93. The average volume for Gulf has been 288,700 shares per day over the past 30 days. Gulf has a market cap of $86.2 million and is part of the basic materials sector and chemicals industry. Shares are up 46.4% year to date as of the close of trading on Friday. Gulf Resources, Inc., together with its subsidiaries, engages in the manufacture and trade of bromine and crude salt, as well as in the manufacture of chemical products for use in the oil industry and paper manufacturing industry in the People's Republic of China. The company has a P/E ratio of 2.2, equal to the average chemicals industry P/E ratio and below the S&P 500 P/E ratio of 17.7. TheStreet Ratings rates Gulf as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. You can view the full Gulf Ratings Report. Get more investment ideas from our investment research center. Interested in other stocks that are gapping up? Get free SMS text alerts sent to you when the action happens by texting UP to 95370 or select from multiple alert options.