Chevron Corp (CVX): Today's Featured Basic Materials Winner

Chevron ( CVX) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 0.4%. By the end of trading, Chevron rose $1.71 (1.6%) to $108.27 on average volume. Throughout the day, 6.1 million shares of Chevron exchanged hands as compared to its average daily volume of 6.5 million shares. The stock ranged in a price between $106.39-$108.79 after having opened the day at $106.62 as compared to the previous trading day's close of $106.56. Other companies within the Basic Materials sector that increased today were: Anooraq Resources Corporation ( ANO), up 15.6%, Advantage Oil & Gas ( AAV), up 10.5%, Huntsman Corporation ( HUN), up 9%, and Polymet Mining ( PLM), up 8.9%.

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. Chevron has a market cap of $209.5 billion and is part of the energy industry. The company has a P/E ratio of 7.9, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 0.2% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Chevron a buy, one analyst rates it a sell, and two rate it a hold.

TheStreet Ratings rates Chevron as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, GeoMet ( GMET), down 12.8%, Forest Oil ( FST), down 10.8%, Metabolix ( MBLX), down 9.2%, and Flexible Solutions International ( FSI), down 8.7%, were all losers within the basic materials sector with HollyFrontier ( HFC) being today's basic materials sector loser.

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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