5 Stocks Pushing The Basic Materials Sector Lower

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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 51 points (0.4%) at 13,835 as of Tuesday, Feb. 26, 2013, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,532 issues advancing vs. 1,325 declining with 146 unchanged.

The Basic Materials sector currently sits down 0.3% versus the S&P 500, which is unchanged. On the negative front, top decliners within the sector include Chemtura Corporation ( CHMT), down 11.2%, ONEOK Partners L.P ( OKS), down 4.5%, CF Industries Holdings ( CF), down 3.0%, Talisman Energy ( TLM), down 2.7% and Suncor Energy ( SU), down 2.0%. Top gainers within the sector include Randgold Resources ( GOLD), up 2.9%, Gerdau ( GGB), up 2.6%, Chesapeake Energy ( CHK), up 2.5%, Goldcorp ( GG), up 2.2% and Anglogold Ashanti ( AU), up 1.9%.

TheStreet Ratings group would like to highlight 5 stocks pushing the sector lower today:

5. Concho Resources ( CXO) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Concho Resources is down $2.52 (-2.8%) to $87.69 on average volume Thus far, 584,171 shares of Concho Resources exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $87.68-$91.25 after having opened the day at $90.79 as compared to the previous trading day's close of $90.21.

Concho Resources Inc., an independent oil and natural gas company, engages in the acquisition, exploration, and development of oil and natural gas properties in the United States. Its principal operating areas are located in the Permian Basin region of southeast New Mexico and west Texas. Concho Resources has a market cap of $9.9 billion and is part of the energy industry. The company has a P/E ratio of 24.1, above the S&P 500 P/E ratio of 17.7. Shares are up 17.6% year to date as of the close of trading on Monday. Currently there are 19 analysts that rate Concho Resources a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Concho Resources as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Concho Resources Ratings Report now.

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4. As of noon trading, HollyFrontier ( HFC) is down $2.24 (-4.1%) to $52.36 on heavy volume Thus far, 3.7 million shares of HollyFrontier exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $52.10-$54.50 after having opened the day at $53.56 as compared to the previous trading day's close of $54.60.

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 $11.3 billion and is part of the energy industry. The company has a P/E ratio of 7.7, below the S&P 500 P/E ratio of 17.7. Shares are up 19.2% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate HollyFrontier a buy, no analysts rate it a sell, and 5 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, notable return on equity, attractive valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full HollyFrontier Ratings Report now.

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3. As of noon trading, Petroleo Brasileiro SA Petrobras ( PBR.A) is down $0.30 (-1.8%) to $16.64 on light volume Thus far, 2.8 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 9.9 million shares. The stock has ranged in price between $16.61-$16.85 after having opened the day at $16.73 as compared to the previous trading day's close of $16.94.

Petroleo Brasileiro S.A. operates as an integrated oil and gas company in Brazil and internationally. Petroleo Brasileiro SA Petrobras has a market cap of $112.6 billion and is part of the energy industry. The company has a P/E ratio of 7.1, below the S&P 500 P/E ratio of 17.7. Shares are down 10.6% year to date as of the close of trading on Monday.

TheStreet Ratings rates Petroleo Brasileiro SA Petrobras as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins. Get the full Petroleo Brasileiro SA Petrobras Ratings Report now.

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2. As of noon trading, Transocean ( RIG) is down $0.70 (-1.4%) to $50.54 on average volume Thus far, 2.2 million shares of Transocean exchanged hands as compared to its average daily volume of 3.4 million shares. The stock has ranged in price between $50.10-$51.47 after having opened the day at $51.45 as compared to the previous trading day's close of $51.24.

Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. Transocean has a market cap of $19.2 billion and is part of the energy industry. Shares are up 19.3% year to date as of the close of trading on Monday. Currently there are 18 analysts that rate Transocean a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Transocean as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and disappointing return on equity. Get the full Transocean Ratings Report now.

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1. As of noon trading, Anadarko Petroleum ( APC) is down $1.10 (-1.4%) to $77.47 on average volume Thus far, 2.1 million shares of Anadarko Petroleum exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $77.22-$79.27 after having opened the day at $79.05 as compared to the previous trading day's close of $78.57.

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of natural gas, crude oil, condensate, and natural gas liquids(NGLs) in the United States, Algeria, and internationally. Anadarko Petroleum has a market cap of $40.9 billion and is part of the energy industry. The company has a P/E ratio of 17.2, below the S&P 500 P/E ratio of 17.7. Shares are up 10.0% year to date as of the close of trading on Monday. Currently there are 22 analysts that rate Anadarko Petroleum a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Anadarko Petroleum as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, good cash flow from operations, expanding profit margins, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Anadarko Petroleum Ratings Report now.

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If you are interested in one of these 3 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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