Noble Corporation (NE): Today's Featured Basic Materials Winner

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.

Noble Corporation ( NE) 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, Noble Corporation rose $1.03 (2.8%) to $38.08 on average volume. Throughout the day, 4.3 million shares of Noble Corporation exchanged hands as compared to its average daily volume of 3.3 million shares. The stock ranged in a price between $37.03-$38.15 after having opened the day at $37.04 as compared to the previous trading day's close of $37.05. Other companies within the Basic Materials sector that increased today were: Geokinetics ( GOK), up 40.1%, Altair Nanotechnologies ( ALTI), up 14.1%, KiOR ( KIOR), up 8.5%, and Great Northern Iron Ore ( GNI), up 8.2%.
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Noble Corporation operates as an offshore drilling contractor for the oil and gas industry. The company offers contract drilling services for oil and gas wells. Noble Corporation has a market cap of $9.28 billion and is part of the energy industry. The company has a P/E ratio of 17.3, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 21.6% year to date as of the close of trading on Tuesday. Currently there are 20 analysts that rate Noble Corporation a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Noble Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, compelling growth in net income and increase in stock price during the past year. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Great Basin Gold ( GBG), down 57.9%, Pure Bioscience ( PURE), down 17.1%, Energy Services of America Corporation ( ESA), down 14.5%, and GeoGlobal Resources ( GGR), down 11.4%, were all laggards within the basic materials sector with Cameco ( CCJ) being today's basic materials sector laggard.

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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