Royal Dutch Shell PLC ADR (RDS.B): Today's Featured Basic Materials Winner

Royal Dutch Shell PLC ADR ( RDS.B) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 1.3%. By the end of trading, Royal Dutch Shell PLC ADR rose $1.35 (2%) to $68.83 on average volume. Throughout the day, 765,379 shares of Royal Dutch Shell PLC ADR exchanged hands as compared to its average daily volume of 850,900 shares. The stock ranged in a price between $68.25-$68.93 after having opened the day at $68.39 as compared to the previous trading day's close of $67.48. Other companies within the Basic Materials sector that increased today were: China Gerui Advanced Materials Group ( CHOP), up 33.2%, ATP Oil & Gas ( ATPG), up 29.8%, Atlatsa Resources ( ATL), up 29.6%, and Uranium Energy Corporation ( UEC), up 21.8%.

Royal Dutch Shell plc operates as an oil and gas company worldwide. The company explores for and extracts crude oil and natural gas. Royal Dutch Shell PLC ADR has a market cap of $212.82 billion and is part of the energy industry. The company has a P/E ratio of 8.5, below the S&P 500 P/E ratio of 17.7. Shares are down 16.4% year to date as of the close of trading on Thursday.

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

On the negative front, China Natural Resources ( CHNR), down 28.8%, Cereplast ( CERP), down 15%, Great Basin Gold ( GBG), down 13.6%, and Geokinetics ( GOK), down 13.6%, were all losers within the basic materials sector with Newmont Mining Corporation ( NEM) 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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