Anadarko Petroleum Corp (APC): Today's Featured Basic Materials 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.

Anadarko Petroleum ( APC) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day down 0.4%. By the end of trading, Anadarko Petroleum fell 76 cents (-1.1%) to $69.05 on light volume. Throughout the day, 2.2 million shares of Anadarko Petroleum exchanged hands as compared to its average daily volume of 4.3 million shares. The stock ranged in price between $68.75-$70.41 after having opened the day at $70.28 as compared to the previous trading day's close of $69.81. Other companies within the Basic Materials sector that declined today were: Lizhan Environmental ( LZEN), down 37.5%, Pacific Booker Minerals ( PBM), down 18.5%, Atlatsa Resources ( ATL), down 10.1%, and Lucas Energy ( LEI), down 9.4%.
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Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of natural gas, crude oil, condensate, and natural gas liquids(NGLs) in the United States, Algeria, and internationally. Anadarko Petroleum has a market cap of $34.5 billion and is part of the energy industry. Shares are down 8.5% year to date as of the close of trading on Thursday. Currently there are 21 analysts that rate Anadarko Petroleum a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Anadarko Petroleum as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

On the positive front, Primero Mining ( PPP), up 36.5%, GeoPetro Resources Company ( GPR), up 11%, Sinopec Shanghai Petrochemical Company Limi ( SHI), up 9.7%, and Minco Gold Corporation ( MGH), up 7.6%, were all gainers within the basic materials sector with Eastman Chemical Company ( EMN) 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).

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