Potash Corporation Of Saskatchewan Inc. (POT): Today's Featured Chemicals 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.

Potash Corporation of Saskatchewan ( POT) pushed the Chemicals industry lower today making it today's featured Chemicals laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Potash Corporation of Saskatchewan fell 48 cents (-1.2%) to $39.61 on average volume. Throughout the day, 4.7 million shares of Potash Corporation of Saskatchewan exchanged hands as compared to its average daily volume of 4.1 million shares. The stock ranged in price between $39.36-$39.98 after having opened the day at $39.84 as compared to the previous trading day's close of $40.09. Other companies within the Chemicals industry that declined today were: Lightbridge ( LTBR), down 17.4%, American Vanguard Corporation ( AVD), down 7.7%, Ceres ( CERE), down 6.5%, and Ikonics Corporation ( IKNX), down 5.2%.
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Potash Corporation of Saskatchewan Inc., together with its subsidiaries, produces and sells fertilizers and related industrial and feed products primarily in the United States and Canada. The company mines and produces potash, which is used as fertilizer. Potash Corporation of Saskatchewan has a market cap of $34.28 billion and is part of the basic materials sector. The company has a P/E ratio of 16.8, below the S&P 500 P/E ratio of 17.7. Shares are down 2.2% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Potash Corporation of Saskatchewan a buy, two analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Potash Corporation of Saskatchewan as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the positive front, Green Plains Renewable Energy ( GPRE), up 8.4%, BioFuel Energy Corporation ( BIOF), up 5.2%, Methes Energies International ( MEIL), up 4.1%, and Penford Corporation ( PENX), up 3.3%, were all gainers within the chemicals industry with LyondellBasell Industries ( LYB) 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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