5 Stocks Pushing The Basic Materials Sector Lower

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 48 points (0.4%) at 12,859 as of Friday, Nov. 9, 2012, 11:50 AM ET. The NYSE advances/declines ratio sits at 1,662 issues advancing vs. 1,212 declining with 143 unchanged.

The Basic Materials sector currently sits up 0.2% versus the S&P 500, which is up 0.6%. On the negative front, top decliners within the sector include Enerplus ( ERF), down 12.5%, SandRidge Energy ( SD), down 7.2%, Enterprise Products Partners ( EPD), down 1.9%, Hess ( HES), down 1.5% and Marathon Petroleum ( MPC), down 1.6%. Top gainers within the sector include Pioneer Natural Resources Company ( PXD), up 3.3%, Talisman Energy ( TLM), up 3.0%, Nexen ( NXY), up 2.8%, ArcelorMittal ( MT), up 2.4% and Gerdau ( GGB), up 1.6%.

TheStreet Ratings group would like to highlight 5 stocks pushing the sector lower today:

5. Linn Energy ( LINE) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Linn Energy is down $1.16 (-2.9%) to $38.78 on heavy volume Thus far, 1.7 million shares of Linn Energy exchanged hands as compared to its average daily volume of 846,000 shares. The stock has ranged in price between $38.30-$39.90 after having opened the day at $39.51 as compared to the previous trading day's close of $39.93.

Linn Energy, LLC, an independent oil and natural gas company, engages in the acquisition and development of oil and gas properties. The company's properties are primarily located in the Mid-Continent, the Permian Basin, Michigan, California, and the Williston Basin in the United States. Linn Energy has a market cap of $8.1 billion and is part of the energy industry. The company has a P/E ratio of -18.9, below the S&P 500 P/E ratio of 17.7. Shares are up 7.1% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Linn Energy a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Linn Energy as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity. Get the full Linn Energy Ratings Report now.

4. As of noon trading, Plains All American Pipeline ( PAA) is down $0.86 (-1.8%) to $45.74 on average volume Thus far, 481,291 shares of Plains All American Pipeline exchanged hands as compared to its average daily volume of 731,600 shares. The stock has ranged in price between $45.46-$46.45 after having opened the day at $46.10 as compared to the previous trading day's close of $46.60.

Plains All American Pipeline, L.P., through its subsidiaries, engages in the transportation, storage, terminalling, and marketing of crude oil, refined products, and liquid petroleum gas (LPG) products in the United States and Canada. Plains All American Pipeline has a market cap of $15.5 billion and is part of the energy industry. The company has a P/E ratio of 19.6, above the S&P 500 P/E ratio of 17.7. Shares are up 27.2% year to date as of the close of trading on Thursday. Currently there are 15 analysts that rate Plains All American Pipeline a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Plains All American Pipeline as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Plains All American Pipeline Ratings Report now.

3. As of noon trading, Randgold Resources ( GOLD) is down $2.87 (-2.5%) to $112.13 on average volume Thus far, 268,297 shares of Randgold Resources exchanged hands as compared to its average daily volume of 602,000 shares. The stock has ranged in price between $111.60-$113.04 after having opened the day at $112.73 as compared to the previous trading day's close of $115.00.

Randgold Resources Limited, together with its subsidiaries, engages in the exploration and mining of gold deposits in west and central Africa. Randgold Resources has a market cap of $10.5 billion and is part of the metals & mining industry. The company has a P/E ratio of 24.7, above the S&P 500 P/E ratio of 17.7. Shares are up 12.0% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate Randgold Resources a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Randgold Resources 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, notable return on equity, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Randgold Resources Ratings Report now.

2. As of noon trading, Kinder Morgan ( KMI) is down $0.30 (-0.9%) to $32.64 on light volume Thus far, 1.9 million shares of Kinder Morgan exchanged hands as compared to its average daily volume of 5.6 million shares. The stock has ranged in price between $32.46-$32.84 after having opened the day at $32.67 as compared to the previous trading day's close of $32.94.

Kinder Morgan, Inc. owns and operates energy transportation and storage assets in the United States and Canada. The company operates in six segments: Products Pipelines-KMP, Natural Gas Pipelines KMP, CO2 KMP, Terminals KMP, Kinder Morgan Canada KMP, and NGPL PipeCo LLC. Kinder Morgan has a market cap of $21.6 billion and is part of the energy industry. The company has a P/E ratio of 72.5, above the S&P 500 P/E ratio of 17.7. Shares are up 3.6% year to date as of the close of trading on Thursday. Currently there are 7 analysts that rate Kinder Morgan a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Kinder Morgan as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and disappointing return on equity. Get the full Kinder Morgan Ratings Report now.

1. As of noon trading, LyondellBasell Industries ( LYB) is down $0.70 (-1.4%) to $51.22 on average volume Thus far, 2.0 million shares of LyondellBasell Industries exchanged hands as compared to its average daily volume of 4.8 million shares. The stock has ranged in price between $51.00-$52.19 after having opened the day at $52.19 as compared to the previous trading day's close of $51.92.

LyondellBasell Industries N.V. manufacturers and sells chemicals and polymers, refines crude oil, produces gasoline blending components, and develops and licenses technologies for the production of polymers. LyondellBasell Industries has a market cap of $30.4 billion and is part of the chemicals industry. The company has a P/E ratio of 16.0, below the S&P 500 P/E ratio of 17.7. Shares are up 59.8% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate LyondellBasell Industries a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates LyondellBasell Industries as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Get the full LyondellBasell Industries Ratings Report now.

If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.

null