Baker Hughes Inc. (BHI): Today's Featured Basic Materials Winner

Baker Hughes ( BHI) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 0.1%. By the end of trading, Baker Hughes rose 94 cents (2.3%) to $41.86 on average volume. Throughout the day, 6.8 million shares of Baker Hughes exchanged hands as compared to its average daily volume of six million shares. The stock ranged in a price between $40.56-$42.03 after having opened the day at $40.69 as compared to the previous trading day's close of $40.92. Other companies within the Basic Materials sector that increased today were: Voyager Oil & Gas ( VOG), up 9.8%, China Gengsheng Minerals ( CHGS), up 8.9%, Isramco ( ISRL), up 8.2%, and GeoMet ( GMET), up 7.1%.

Baker Hughes Incorporated supplies oilfield services, products, and technology services and systems to the oil and natural gas industry worldwide. Baker Hughes has a market cap of $17.23 billion and is part of the energy industry. The company has a P/E ratio of 9.9, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 19.2% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Baker Hughes a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Baker Hughes as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.

On the negative front, Whiting USA Trust I ( WHX), down 34.4%, Sanchez Energy ( SN), down 10.9%, Cubic Energy ( QBC), down 10.1%, and Mexco Energy Corporation ( MXC), down 9.8%, were all losers within the basic materials sector with Cenovus Energy ( CVE) 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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