Rockwood Holdings Inc (ROC): Today's Featured Chemicals 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.

Rockwood Holdings ( ROC) pushed the Chemicals industry higher today making it today's featured chemicals winner. The industry as a whole closed the day up 0.6%. By the end of trading, Rockwood Holdings rose 81 cents (1.5%) to $54.61 on average volume. Throughout the day, 841,261 shares of Rockwood Holdings exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $54.07-$55.47 after having opened the day at $54.16 as compared to the previous trading day's close of $53.80. Other companies within the Chemicals industry that increased today were: Flexible Solutions International ( FSI), up 7.3%, TOR Minerals International ( TORM), up 4.7%, Senomyx ( SNMX), up 4.1%, and Pure Bioscience ( PURE), up 4.1%.
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Rockwood Holdings, Inc. develops, manufactures, and markets specialty chemicals and materials for industrial and commercial applications primarily in Germany, the United States, and Europe. Rockwood Holdings has a market cap of $4.24 billion and is part of the basic materials sector. The company has a P/E ratio of 10.3, below the S&P 500 P/E ratio of 17.7. Shares are up 10.4% year to date as of the close of trading on Monday. Currently there are four analysts that rate Rockwood Holdings a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Rockwood Holdings as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the chemicals industry could consider Materials Select Sector SPDR ( XLB) while those bearish on the chemicals industry could consider ProShares Short Basic Materials Fd ( SBM).

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