InterOil Corporation (IOC): 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.

InterOil Corporation ( IOC) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 1.1%. By the end of trading, InterOil Corporation fell $1.79 (-3%) to $58.36 on average volume. Throughout the day, 658,752 shares of InterOil Corporation exchanged hands as compared to its average daily volume of 707,500 shares. The stock ranged in price between $58.05-$60.69 after having opened the day at $60.22 as compared to the previous trading day's close of $60.15. Other companies within the Basic Materials sector that declined today were: BMB Munai ( BMBM), down 16.3%, Crosshair Energy ( CXZ), down 11.1%, Gasco Energy ( GSX), down 9.6%, and Gold Standard Ventures ( GSV), down 6.8%.
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InterOil Corporation operates as an integrated oil and gas company in Papua New Guinea. The company engages in the exploration, appraisal, and development of crude oil and natural gas structures. InterOil Corporation has a market cap of $2.92 billion and is part of the energy industry. Shares are up 8.3% year to date as of the close of trading on Friday. Currently there is one analyst that rates InterOil Corporation a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates InterOil Corporation as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and poor profit margins.

On the positive front, Jaguar Mining ( JAG), up 32%, U.S. Energy ( USEG), up 22.1%, Syntroleum Corporation ( SYNM), up 17.2%, and OM Group ( OMG), up 11.8%, were all gainers within the basic materials sector with ConocoPhillips ( COP) 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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