Celanese Corporation (CE): 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.

Celanese Corporation ( CE) pushed the Chemicals industry lower today making it today's featured Chemicals laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Celanese Corporation fell 64 cents (-1.7%) to $36.83 on average volume. Throughout the day, 2.6 million shares of Celanese Corporation exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $36.64-$37.12 after having opened the day at $37 as compared to the previous trading day's close of $37.47. Other companies within the Chemicals industry that declined today were: Renewable Energy Group ( REGI), down 21.6%, Cereplast ( CERP), down 12.5%, Flotek Industries ( FTK), down 5.8%, and Flexible Solutions International ( FSI), down 4.8%.
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Celanese Corporation, a technology and specialty materials company, engages in manufacture and sale of value-added chemicals, thermoplastic polymers, and other chemical-based products. Celanese Corporation has a market cap of $6 billion and is part of the basic materials sector. The company has a P/E ratio of 9.2, equal to the average chemicals industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 14.8% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Celanese Corporation a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Celanese Corporation as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, growth in earnings per share, increase in net income, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

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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