Concho Resources Inc. (CXO): Today's Featured Basic Materials 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.

Concho Resources ( CXO) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 0.9%. By the end of trading, Concho Resources rose $2.61 (2.9%) to $94.09 on average volume. Throughout the day, 1.5 million shares of Concho Resources exchanged hands as compared to its average daily volume of one million shares. The stock ranged in a price between $91.01-$95.39 after having opened the day at $91.34 as compared to the previous trading day's close of $91.48. Other companies within the Basic Materials sector that increased today were: HyperDynamics Corporation ( HDY), up 8.9%, GeoPetro Resources Company ( GPR), up 8.3%, Cubic Energy ( QBC), up 6.9%, and Midstates Petroleum ( MPO), up 6.5%.
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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 $9.56 billion and is part of the energy industry. The company has a P/E ratio of 23.2, above the S&P 500 P/E ratio of 17.7. Shares are up 13.6% year to date as of the close of trading on Tuesday. Currently there are 18 analysts that rate Concho Resources a buy, no analysts rate it a sell, and four 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 increase in net income, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Prospect Global Resources ( PGRX), down 36.1%, BMB Munai ( BMBM), down 17.2%, USEC ( USU), down 12.4%, and Kimber Resources ( KBX), down 11%, were all laggards within the basic materials sector with Southern Copper Corporation ( SCCO) being today's basic materials sector laggard.

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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