Cimarex Energy Company (XEC): Today's Featured Basic Materials 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.

Cimarex Energy Company ( XEC) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 1.7%. By the end of trading, Cimarex Energy Company rose $3.73 (6.3%) to $62.97 on heavy volume. Throughout the day, 2.1 million shares of Cimarex Energy Company exchanged hands as compared to its average daily volume of 808,200 shares. The stock ranged in a price between $59.24-$64.19 after having opened the day at $59.77 as compared to the previous trading day's close of $59.24. Other companies within the Basic Materials sector that increased today were: China Shen Zhou Mining & Resources ( SHZ), up 20.8%, US Silica Holdings ( SLCA), up 10.7%, Taseko Mines Ltd NPL ( TGB), up 10.5%, and China Gengsheng Minerals ( CHGS), up 10.4%.
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Cimarex Energy Co. operates as an independent oil and gas exploration and production company primarily in Texas, Oklahoma, New Mexico, and Kansas. Cimarex Energy Company has a market cap of $4.92 billion and is part of the energy industry. The company has a P/E ratio of 11.9, below the S&P 500 P/E ratio of 17.7. Shares are down 4.3% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Cimarex Energy Company a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Cimarex Energy Company as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the negative front, Prospect Global Resources ( PGRX), down 11.3%, James River Coal Company ( JRCC), down 9.9%, GeoGlobal Resources ( GGR), down 9.4%, and Alderon Iron Ore ( AXX), down 9%, were all laggards within the basic materials sector with Schlumberger ( SLB) 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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