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.
EOG Resources (
EOG) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 0.3%. By the end of trading, EOG Resources rose $1.67 (1.5%) to $114.09 on average volume. Throughout the day, 2.2 million shares of EOG Resources exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in a price between $112.01-$114.50 after having opened the day at $112.08 as compared to the previous trading day's close of $112.42. Other companies within the Basic Materials sector that increased today were:
Recon Technology (
RCON), up 21%,
PostRock Energy (
PSTR), up 15.9%,
NewMarket Corporation (
NEU), up 14.1%, and
Magellan Petroleum Corporation (
MPET), up 12.3%.
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EOG Resources, Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas and crude oil primarily in the United States, Canada, the Republic of Trinidad and Tobago, the United Kingdom, and the People's Republic of China. EOG Resources has a market cap of $29.89 billion and is part of the energy industry. The company has a P/E ratio of 21.5, equal to the average energy industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 12.4% year to date as of the close of trading on Thursday. Currently there are 18 analysts that rate EOG Resources a buy, no analysts rate it a sell, and six rate it a hold.
TheStreet Ratings rates EOG Resources as a
buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
On the negative front,
Prospect Global Resources (
PGRX), down 17.8%,
Energy Services of America Corporation (
ESA), down 13.1%,
Yanzhou Coal Mining Company (
YZC), down 11.5%, and
TOR Minerals International (
TORM), down 9.1%, were all laggards within the basic materials sector with
Canadian Natural Resources (
CNQ) 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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