Noble Corporation (NE): 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.

Noble Corporation ( NE) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole was unchanged today. By the end of trading, Noble Corporation rose 88 cents (2.4%) to $37.30 on average volume. Throughout the day, four million shares of Noble Corporation exchanged hands as compared to its average daily volume of 3.4 million shares. The stock ranged in a price between $36.42-$37.61 after having opened the day at $36.63 as compared to the previous trading day's close of $36.42. Other companies within the Basic Materials sector that increased today were: Andatee China Marine Fuel Services Corporat ( AMCF), up 46%, Aurizon Mines ( AZK), up 32.4%, GeoPetro Resources Company ( GPR), up 20.6%, and Gasco Energy ( GSX), up 16.8%.
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Noble Corporation operates as an offshore drilling contractor for the oil and gas industry. The company offers contract drilling services for oil and gas wells. Noble Corporation has a market cap of $9.2 billion and is part of the energy industry. The company has a P/E ratio of 17.8, equal to the S&P 500 P/E ratio of 17.7. Shares are up 4.5% year to date as of the close of trading on Friday. Currently there are 21 analysts that rate Noble Corporation a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Noble Corporation as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share.

On the negative front, Uranium Resources ( URRE), down 9.6%, Cubic Energy ( QBC), down 8.6%, Kingold Jewelry ( KGJI), down 7.8%, and United States Antimony Corporation ( UAMY), down 7.7%, were all laggards within the basic materials sector with ArcelorMittal ( MT) 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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