Rockwood Holdings Inc (ROC): Today's Featured Chemicals Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Rockwood Holdings ( ROC) pushed the Chemicals industry lower today making it today's featured Chemicals laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Rockwood Holdings fell $1.28 (-2.6%) to $47.90 on average volume. Throughout the day, 1.1 million shares of Rockwood Holdings exchanged hands as compared to its average daily volume of 747,400 shares. The stock ranged in price between $47.89-$49.52 after having opened the day at $49.52 as compared to the previous trading day's close of $49.18. Other companies within the Chemicals industry that declined today were: Pure Bioscience ( PURE), down 21.7%, Quaker Chemical Corporation ( KWR), down 5%, Hawkins ( HWKN), down 2.2%, and Tronox ( TROX), down 2.2%.

Rockwood Holdings, Inc. develops, manufactures, and markets specialty chemicals and materials for industrial and commercial applications primarily in Germany, the United States, and Europe. Rockwood Holdings has a market cap of $3.81 billion and is part of the basic materials sector. The company has a P/E ratio of 8.9, equal to the average chemicals industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 24.5% year to date as of the close of trading on Monday. Currently there are three analysts that rate Rockwood Holdings a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Rockwood Holdings as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income, notable return on equity, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the chemicals industry could consider Materials Select Sector SPDR ( XLB) while those bearish on the chemicals industry could consider ProShares Short Basic Materials Fd ( SBM).

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