HollyFrontier Corp (HFC): 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.

HollyFrontier ( HFC) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 0.5%. By the end of trading, HollyFrontier rose $1.59 (3.6%) to $45.90 on heavy volume. Throughout the day, 4.9 million shares of HollyFrontier exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in a price between $44.24-$46.74 after having opened the day at $44.41 as compared to the previous trading day's close of $44.31. Other companies within the Basic Materials sector that increased today were: Cubic Energy ( QBC), up 21.3%, Prospect Global Resources ( PGRX), up 13.9%, Saratoga Resources ( SARA), up 13.1%, and Entree Gold ( EGI), up 10.7%.
  • 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.

HollyFrontier Corporation operates as an independent petroleum refiner and marketer in the United States. It produces light products, such as gasoline, diesel fuel, jet fuel, specialty lubricant products, liquefied petroleum gas, fuel oil, and specialty and modified asphalt. HollyFrontier has a market cap of $8.99 billion and is part of the energy industry. The company has a P/E ratio of 6.3, below the S&P 500 P/E ratio of 17.7. Shares are down 4.9% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate HollyFrontier a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates HollyFrontier as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Iamgold ( IAG), down 15.1%, Molycorp ( MCP), down 10.8%, Syntroleum Corporation ( SYNM), down 7.7%, and Silvercorp Metals ( SVM), down 7.6%, were all laggards within the basic materials sector with Goldcorp ( GG) 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).

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

Macquarie: Refineries Returning to Normal Post-Irma, Harvey

Oil Refiners Are Rebounding: Cramer's 'Off the Charts'

When it Drops, it's Time to Shop: Cramer's 'Mad Money' Recap (Tuesday 9/12/17)

Harvey, Irma Put Gulf Oil Refiners on Watch; Tesla Takes Aim at Trucking - ICYMI

U.S. Oil Stockpiles Skyrocket One Week After Hurricane Harvey