Denbury Resources Inc (DNR): Today's Featured Basic Materials Laggard

Denbury Resources ( DNR) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 1%. By the end of trading, Denbury Resources fell 43 cents (-2.7%) to $15.71 on average volume. Throughout the day, 7.7 million shares of Denbury Resources exchanged hands as compared to its average daily volume of seven million shares. The stock ranged in price between $15.64-$16.18 after having opened the day at $16.03 as compared to the previous trading day's close of $16.14. Other companies within the Basic Materials sector that declined today were: GeoGlobal Resources ( GGR), down 15.7%, Alon USA Energy ( ALJ), down 9.2%, OM Group ( OMG), down 8.8%, and Cereplast ( CERP), down 8.2%.

Denbury Resources Inc. engages in the acquisition, development, exploitation, and exploration of oil and natural gas properties in the Gulf Coast region located in Mississippi, Texas, Louisiana, and Alabama. Denbury Resources has a market cap of $6.19 billion and is part of the energy industry. The company has a P/E ratio of 9.6, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 4.9% year to date as of the close of trading on Wednesday. Currently there are 13 analysts that rate Denbury Resources a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Denbury Resources as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

On the positive front, USEC ( USU), up 21.3%, Syntroleum Corporation ( SYNM), up 16.9%, Alpha Natural Resources ( ANR), up 15.1%, and Flotek Industries ( FTK), up 14%, were all gainers within the basic materials sector with Peabody Energy Corporation ( BTU) being today's featured basic materials sector leader.

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).
null

If you liked this article you might like

Cars and Small-but-Strong Energy Stocks in Play

Selling Investors on Cars and Small but Strong Energy Plays

3 Independent Energy Stocks That Are Ready to Rock

5 Stocks Under $10 Poised for Big Breakouts

Short-Interest Tables Show Traders Are Watching the Wrong Stocks

Short-Interest Tables Show Traders Are Watching the Wrong Stocks