Cytec Industries (CYT): 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.

Cytec Industries ( CYT) pushed the Chemicals industry lower today making it today's featured Chemicals laggard. The industry as a whole closed the day down 1.3%. By the end of trading, Cytec Industries fell 99 cents (-1.5%) to $66.08 on average volume. Throughout the day, 452,260 shares of Cytec Industries exchanged hands as compared to its average daily volume of 563,100 shares. The stock ranged in price between $66.02-$67.61 after having opened the day at $66.75 as compared to the previous trading day's close of $67.07. Other companies within the Chemicals industry that declined today were: Cereplast ( CERP), down 24.2%, Tronox ( TROX), down 18.9%, Clean Diesel Technologies ( CDTI), down 15.8%, and Ceres ( CERE), down 8.5%.
  • 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.

Cytec Industries Inc., a specialty chemicals and materials company, engages in developing, manufacturing, and selling chemical products primarily for aerospace composites, structural adhesives, automotive and industrial coatings, electronics, inks, mining, and plastics markets. Cytec Industries has a market cap of $3.02 billion and is part of the basic materials sector. The company has a P/E ratio of 17.6, below the S&P 500 P/E ratio of 17.7. Shares are up 48.3% year to date as of the close of trading on Monday. Currently there are two analysts that rate Cytec Industries a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Cytec Industries 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, good cash flow from operations, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Arabian American Development Company ( ARSD), up 3.7%, Georgia Gulf ( GGC), up 3.1%, Cabot Corporation ( CBT), up 2.8%, and Senomyx ( SNMX), up 2.8%, were all gainers within the chemicals industry with Celanese Corporation ( CE) 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).

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