Kinder Morgan Energy Partners LP (KMP): 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.

Kinder Morgan Energy Partners ( KMP) 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, Kinder Morgan Energy Partners rose 84 cents (1%) to $81.85 on average volume. Throughout the day, 646,282 shares of Kinder Morgan Energy Partners exchanged hands as compared to its average daily volume of 630,800 shares. The stock ranged in a price between $80.75-$81.95 after having opened the day at $81.23 as compared to the previous trading day's close of $81.01. Other companies within the Basic Materials sector that increased today were: China Precision Steel ( CPSL), up 29.2%, Pacific Booker Minerals ( PBM), up 20.1%, Clean Diesel Technologies ( CDTI), up 13%, and China Shen Zhou Mining & Resources ( SHZ), up 12.9%.
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Kinder Morgan Energy Partners, L.P. operates as a pipeline transportation and energy storage company in North America. Kinder Morgan Energy Partners has a market cap of $20.08 billion and is part of the energy industry. The company has a P/E ratio of 41.2, above the S&P 500 P/E ratio of 17.7. Shares are down 4% year to date as of the close of trading on Monday. Currently there are four analysts that rate Kinder Morgan Energy Partners a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Kinder Morgan Energy Partners as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, HyperDynamics Corporation ( HDY), down 19%, McMoRan Exploration ( MMR), down 15.2%, Geokinetics ( GOK), down 14.3%, and Andatee China Marine Fuel Services Corporat ( AMCF), down 13.4%, were all laggards within the basic materials sector with ConocoPhillips ( COP) 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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