Hess Corp (HES): Today's Featured Basic Materials 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.

Hess ( HES) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day down 0.3%. By the end of trading, Hess fell 70 cents (-1.4%) to $48.87 on average volume. Throughout the day, 2.9 million shares of Hess exchanged hands as compared to its average daily volume of 3.5 million shares. The stock ranged in price between $48.69-$49.82 after having opened the day at $49.61 as compared to the previous trading day's close of $49.57. Other companies within the Basic Materials sector that declined today were: Samson Oil & Gas ( SSN), down 20.4%, GeoPetro Resources Company ( GPR), down 14%, Gulf Resources ( GURE), down 13.1%, and United States Antimony Corporation ( UAMY), down 9.8%.
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Hess Corporation, together with its subsidiaries, operates as an integrated energy company. The company operates in two segments, Exploration and Production (E&P) and Marketing and Refining (M&R). Hess has a market cap of $16.94 billion and is part of the energy industry. The company has a P/E ratio of 11.1, below the S&P 500 P/E ratio of 17.7. Shares are down 12.7% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Hess a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Hess as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and generally higher debt management risk.

On the positive front, Andatee China Marine Fuel Services Corporat ( AMCF), up 21%, Lightbridge ( LTBR), up 12%, BMB Munai ( BMBM), up 9.4%, and Gold Standard Ventures ( GSV), up 8.1%, were all gainers within the basic materials sector with Potash Corporation of Saskatchewan ( POT) being today's featured basic materials sector leader.

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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