Suncor Energy Inc (SU): 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.

Suncor Energy ( SU) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 0.2%. By the end of trading, Suncor Energy fell $1.80 (-5.2%) to $32.73 on heavy volume. Throughout the day, 15.4 million shares of Suncor Energy exchanged hands as compared to its average daily volume of 3.3 million shares. The stock ranged in price between $32.32-$33.44 after having opened the day at $33.12 as compared to the previous trading day's close of $34.53. Other companies within the Basic Materials sector that declined today were: Silver Bull Resources ( SVBL), down 16.8%, GeoGlobal Resources ( GGR), down 11.9%, Gasco Energy ( GSX), down 10.3%, and SandRidge Mississippian Trust I ( SDT), down 8.2%.
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Suncor Energy Inc., together with its subsidiaries, operates as an integrated energy company. Suncor Energy has a market cap of $52.39 billion and is part of the energy industry. The company has a P/E ratio of 10.7, below the S&P 500 P/E ratio of 17.7. Shares are up 4.7% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Suncor Energy a buy, no analysts rate it a sell, and none rate it a hold.

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

On the positive front, Goodrich Petroleum ( GDP), up 18.3%, ZaZa Energy ( ZAZA), up 13.9%, Metals USA Holdings ( MUSA), up 12.8%, and Penford Corporation ( PENX), up 12.4%, were all gainers within the basic materials sector with Newmont Mining Corporation ( NEM) 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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