Potash Corporation Of Saskatchewan Inc. (POT): 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.

Potash Corporation of Saskatchewan ( POT) pushed the Chemicals industry lower today making it today's featured Chemicals laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Potash Corporation of Saskatchewan fell 71 cents (-1.7%) to $41.27 on light volume. Throughout the day, four million shares of Potash Corporation of Saskatchewan exchanged hands as compared to its average daily volume of 5.4 million shares. The stock ranged in price between $41.09-$41.66 after having opened the day at $41.57 as compared to the previous trading day's close of $41.98. Other companies within the Chemicals industry that declined today were: Altair Nanotechnologies ( ALTI), down 6%, Metabolix ( MBLX), down 5.4%, Renewable Energy Group ( REGI), down 4.4%, and Omnova Solutions ( OMN), down 4%.
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Potash Corporation of Saskatchewan Inc., together with its subsidiaries, produces and sells fertilizers and related industrial and feed products primarily in the United States and Canada. The company mines and produces potash, which is used as fertilizer. Potash Corporation of Saskatchewan has a market cap of $35.75 billion and is part of the basic materials sector. The company has a P/E ratio of 14.4, equal to the average chemicals industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 1.7% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Potash Corporation of Saskatchewan a buy, one analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Potash Corporation of Saskatchewan as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Gulf Resources ( GURE), up 6.2%, Flexible Solutions International ( FSI), up 6.2%, Intrepid Potash ( IPI), up 3.6%, and Pure Bioscience ( PURE), up 3%, were all gainers within the chemicals industry with E.I. du Pont de Nemours & Company ( DD) being today's featured chemicals industry leader.

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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