Canadian Natural Resources Ltd (CNQ): 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.

Canadian Natural Resources ( CNQ) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day down 0.4%. By the end of trading, Canadian Natural Resources fell 43 cents (-1.4%) to $29.15 on average volume. Throughout the day, 3.8 million shares of Canadian Natural Resources exchanged hands as compared to its average daily volume of 3.4 million shares. The stock ranged in price between $29.06-$29.50 after having opened the day at $29.36 as compared to the previous trading day's close of $29.58. Other companies within the Basic Materials sector that declined today were: Gasco Energy ( GSX), down 22.1%, Alderon Iron Ore ( AXX), down 9.9%, Andatee China Marine Fuel Services Corporat ( AMCF), down 9.7%, and Pure Bioscience ( PURE), down 7.8%.
  • 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.

Canadian Natural Resources Limited engages in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas liquids (NGLs), and natural gas. Canadian Natural Resources has a market cap of $32.54 billion and is part of the energy industry. The company has a P/E ratio of 13.5, below the S&P 500 P/E ratio of 17.7. Shares are up 2.5% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Canadian Natural Resources a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Canadian Natural Resources as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and a generally disappointing performance in the stock itself.

On the positive front, Flexible Solutions International ( FSI), up 20%, Kingold Jewelry ( KGJI), up 15.2%, China Gerui Advanced Materials Group ( CHOP), up 10.2%, and Oxford Resource Partners ( OXF), up 8.9%, were all gainers within the basic materials sector with Pioneer Natural Resources Company ( PXD) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Keystone Pipeline Critics Appealing to GOP's Favorite Issues in Nebraska Battle

Strength of the Market; Peak Oil Price: Jim Cramer's View

Cramer: ConocoPhillips Is Telling Us We're at Peak Oil Price

Wall Street Stuck in Place as Investors Wait for February Jobs Report

Crude Oil Slumps Drags Stocks Into the Red, Wall Street Looks to Jobs Report