Walter Energy Inc (WLT): Today's Featured Basic Materials Loser

Walter Energy ( WLT) pushed the Basic Materials sector lower today making it today's featured Basic Materials loser. The sector as a whole closed the day up 1.2%. By the end of trading, Walter Energy fell $1.12 (-1.6%) to $67.18 on light volume. Throughout the day, 1.8 million shares of Walter Energy exchanged hands as compared to its average daily volume of 2.7 million shares. The stock ranged in price between $66.76-$68.39 after having opened the day at $67.24 as compared to the previous trading day's close of $68.30. Other company's within the Basic Materials sector that declined today were: Lizhan Environmental ( LZEN), down 11.9%, Green Plains Renewable Energy ( GPRE), down 11.5%, Mission NewEnergy ( MNEL), down 9.8%, and GeoGlobal Resources ( GGR), down 8.6%.

Walter Energy, Inc. produces and exports metallurgical coal for the steel industry primarily in the United States. The company also produces thermal and industrial coal, anthracite, metallurgical coke, coal bed methane gas, and other related products. Walter Energy has a market cap of $4.14 billion and is part of the metals & mining industry. The company has a P/E ratio of 11.5, equal to the average metals & mining industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 12.8% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Walter Energy a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Walter Energy as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the positive front, Houston American Energy Corporation ( HUSA), up 35%, Recon Technology ( RCON), up 21.4%, Flexible Solutions International ( FSI), up 17.8%, and NewMarket Corporation ( NEU), up 16.4%, were all gainers within the basic materials sector with Petroleo Brasileiro SA Petrobras ( PBR) being today's featured basic materials sector winner.

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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Weak On High Volume: Walter Energy (WLT)

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Walter Energy (WLT) Stock Is Down Today on Earnings Miss

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