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.

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