Valspar Corporation (VAL): 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.

Valspar Corporation ( VAL) pushed the Chemicals industry lower today making it today's featured Chemicals laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Valspar Corporation fell 94 cents (-1.7%) to $54.96 on average volume. Throughout the day, 741,622 shares of Valspar Corporation exchanged hands as compared to its average daily volume of 770,300 shares. The stock ranged in price between $54.53-$56.03 after having opened the day at $55.95 as compared to the previous trading day's close of $55.90. Other companies within the Chemicals industry that declined today were: TOR Minerals International ( TORM), down 9.1%, Lightbridge ( LTBR), down 8.7%, Cereplast ( CERP), down 5.3%, and Verenium Corporation ( VRNM), down 5.2%.
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The Valspar Corporation, together with its subsidiaries, manufactures and distributes coatings, paints, and related products worldwide. Valspar Corporation has a market cap of $5.17 billion and is part of the basic materials sector. Shares are up 46.2% year to date as of the close of trading on Thursday. Currently there are five analysts that rate Valspar Corporation a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Valspar Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, NewMarket Corporation ( NEU), up 14.1%, Eastman Chemical Company ( EMN), up 12.2%, Synthesis Energy Sys ( SYMX), up 3.2%, and PolyOne Corporation ( POL), up 3%, were all gainers within the chemicals industry with Huntsman Corporation ( HUN) 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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