LyondellBasell Industries NV (LYB): 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.

LyondellBasell Industries ( LYB) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day down 0.5%. By the end of trading, LyondellBasell Industries fell $1.51 (-2.4%) to $61.24 on average volume. Throughout the day, 5.1 million shares of LyondellBasell Industries exchanged hands as compared to its average daily volume of 4.3 million shares. The stock ranged in price between $60.86-$62.69 after having opened the day at $62.67 as compared to the previous trading day's close of $62.75. Other companies within the Basic Materials sector that declined today were: Torch Energy Royalty ( TRU), down 20.9%, BMB Munai ( BMBM), down 19.3%, Timberline Resources Corporation ( TLR), down 8.4%, and James River Coal Company ( JRCC), down 8.1%.
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LyondellBasell Industries N.V. manufacturers and sells chemicals and polymers, refines crude oil, produces gasoline blending components, and develops and licenses technologies for the production of polymers. LyondellBasell Industries has a market cap of $35.96 billion and is part of the chemicals industry. The company has a P/E ratio of 18.9, above the S&P 500 P/E ratio of 17.7. Shares are up 8.8% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate LyondellBasell Industries a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates LyondellBasell Industries as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

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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