Celanese Corporation (CE): Today's Featured Chemicals 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.

Celanese Corporation ( CE) pushed the Chemicals industry higher today making it today's featured chemicals winner. The industry as a whole closed the day down 1.3%. By the end of trading, Celanese Corporation rose 75 cents (2%) to $38.19 on heavy volume. Throughout the day, 3.5 million shares of Celanese Corporation exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in a price between $36.18-$39.46 after having opened the day at $36.18 as compared to the previous trading day's close of $37.44. Other companies within the Chemicals industry that increased today were: BioFuel Energy Corporation ( BIOF), up 3.8%, Omnova Solutions ( OMN), up 3.7%, Gulf Resources ( GURE), up 3.1%, and Cabot Corporation ( CBT), up 2.3%.
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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 $5.93 billion and is part of the basic materials sector. The company has a P/E ratio of nine, equal to the average chemicals industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 15.8% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Celanese Corporation a buy, no analysts rate it a sell, and five 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 increase in net income, attractive valuation levels, growth in earnings per share, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, E.I. du Pont de Nemours & Company ( DD), down 9.1%, Cereplast ( CERP), down 7%, Tronox ( TROX), down 6.7%, and Clean Diesel Technologies ( CDTI), down 6.5%, were all laggards within the chemicals industry with Monsanto Company ( MON) being today's chemicals industry laggard.

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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