Cabot Oil & Gas Corporation (COG): 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.

Cabot Oil & Gas Corporation ( COG) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 0.7%. By the end of trading, Cabot Oil & Gas Corporation rose 53 cents (1.1%) to $48.35 on average volume. Throughout the day, two million shares of Cabot Oil & Gas Corporation exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in a price between $47.16-$49.09 after having opened the day at $47.19 as compared to the previous trading day's close of $47.82. Other companies within the Basic Materials sector that increased today were: Emerald Oil ( EOX), up 270.2%, ZaZa Energy ( ZAZA), up 32.1%, Quaterra Resources ( QMM), up 23.7%, and BMB Munai ( BMBM), up 17.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Cabot Oil & Gas Corporation, an independent oil and gas company, engages in the development, exploitation, exploration, production, and marketing of natural gas, crude oil and, and natural gas liquids in the United States. Cabot Oil & Gas Corporation has a market cap of $10 billion and is part of the energy industry. The company has a P/E ratio of 86.5, above the S&P 500 P/E ratio of 17.7. Shares are up 25.3% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Cabot Oil & Gas Corporation a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Cabot Oil & Gas Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Hi-Crush Partners ( HCLP), down 26.3%, Cereplast ( CERP), down 24.2%, Tronox ( TROX), down 18.9%, and HyperDynamics Corporation ( HDY), down 18.3%, were all laggards within the basic materials sector with BP ( BP) 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).

FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!.

If you liked this article you might like

It's Going to Be a Good Winter for Natural Gas Companies, Morgan Stanley Says

Cabot Oil & Gas Looks Ready to Lodge on the Long Side

Cramer: Acquisition Shows Energy Companies Know Where Values Are