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.
Sigma-Aldrich Corporation (
SIAL) pushed the Chemicals industry lower today making it today's featured Chemicals laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Sigma-Aldrich Corporation fell $1.32 (-1.7%) to $76.34 on heavy volume. Throughout the day, 894,610 shares of Sigma-Aldrich Corporation exchanged hands as compared to its average daily volume of 495,800 shares. The stock ranged in price between $75.85-$77.07 after having opened the day at $76.55 as compared to the previous trading day's close of $77.66. Other companies within the Chemicals industry that declined today were:
Flexible Solutions International (
FSI), down 5.2%,
Rentech Nitrogen Partners (
RNF), down 4.9%,
Penford Corporation (
PENX), down 4.6%, and
EDEN Bioscience Corporation (
EDEN), down 3.9%.
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Sigma-Aldrich Corporation, a life science and high technology company, develops, manufactures, purchases, and distributes various chemicals, biochemicals, and equipment worldwide. Sigma-Aldrich Corporation has a market cap of $9.26 billion and is part of the basic materials sector. The company has a P/E ratio of 20.4, above the S&P 500 P/E ratio of 17.7. Shares are up 4.6% year to date as of the close of trading on Friday. Currently there are five analysts that rate Sigma-Aldrich Corporation a buy, no analysts rate it a sell, and nine rate it a hold.
TheStreet Ratings rates Sigma-Aldrich Corporation 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, increase in stock price during the past year, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
On the positive front,
H.B. Fuller Company (
FUL), up 4.7%,
Pure Bioscience (
PURE), up 3.2%,
Valhi Incorporated (
VHI), up 2.8%, and
Synthesis Energy Sys (
SYMX), up 2.7%, were all gainers within the chemicals industry with
Eastman Chemical Company (
EMN) being today's featured chemicals industry leader.
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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