Valspar Corporation (VAL): Today's Featured Chemicals 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.

Valspar Corporation ( VAL) pushed the Chemicals industry higher today making it today's featured chemicals winner. The industry as a whole closed the day down 0.3%. By the end of trading, Valspar Corporation rose 94 cents (1.5%) to $63.97 on average volume. Throughout the day, 439,478 shares of Valspar Corporation exchanged hands as compared to its average daily volume of 562,800 shares. The stock ranged in a price between $63.10-$64.14 after having opened the day at $63.10 as compared to the previous trading day's close of $63.03. Other companies within the Chemicals industry that increased today were: REX American Resources ( REX), up 5.3%, Methes Energies International ( MEIL), up 4.3%, Penford Corporation ( PENX), up 3.1%, and Ikonics Corporation ( IKNX), up 3%.
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The Valspar Corporation manufactures and distributes various coatings, paints, and related products worldwide. The company operates in two segments, Coatings and Paints. Valspar Corporation has a market cap of $5.61 billion and is part of the basic materials sector. The company has a P/E ratio of 20.2, above the S&P 500 P/E ratio of 17.7. Shares are up 1% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Valspar Corporation a buy, one analyst rates it a sell, and five rate it a hold.

TheStreet Ratings rates Valspar Corporation as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Lightbridge ( LTBR), down 6.9%, Green Plains Renewable Energy ( GPRE), down 3.6%, Verenium Corporation ( VRNM), down 3.3%, and Kronos Worldwide ( KRO), down 3.2%, were all laggards within the chemicals industry with CF Industries Holdings ( CF) being today's chemicals industry laggard.

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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