5 Stocks Dragging The Basic Materials Sector Downward

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 97 points (0.7%) at 14,670 as of Tuesday, April 2, 2013, 12:49 PM ET. The NYSE advances/declines ratio sits at 1,756 issues advancing vs. 1,114 declining with 151 unchanged.

The Basic Materials sector currently sits down 0.7% versus the S&P 500, which is up 0.6%. On the negative front, top decliners within the sector include Eldorado Gold ( EGO), down 6.4%, Valero Energy Corporation ( VLO), down 4.6%, Silver Wheaton Corporation ( SLW), down 4.2%, Kinross Gold Corporation ( KGC), down 3.9% and ArcelorMittal ( MT), down 3.4%. Top gainers within the sector include Eni SpA ( E), up 2.2%, Cameron International Corporation ( CAM), up 2.1%, Tenaris ( TS), up 1.4%, Schlumberger ( SLB), up 1.4% and PetroChina ( PTR), up 1.2%.

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

5. Tesoro Corporation ( TSO) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Tesoro Corporation is down $1.89 (-3.3%) to $54.96 on average volume Thus far, 2.2 million shares of Tesoro Corporation exchanged hands as compared to its average daily volume of 3.6 million shares. The stock has ranged in price between $54.73-$57.14 after having opened the day at $57.10 as compared to the previous trading day's close of $56.85.

Tesoro Corporation, together with its subsidiaries, engages in refining and marketing petroleum products in the United States. It operates in two segments, Refining and Retail. Tesoro Corporation has a market cap of $8.0 billion and is part of the energy industry. The company has a P/E ratio of 11.2, below the S&P 500 P/E ratio of 17.7. Shares are up 29.1% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Tesoro Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Tesoro Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Tesoro Corporation Ratings Report now.

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4. As of noon trading, LyondellBasell Industries ( LYB) is down $0.76 (-1.2%) to $60.99 on average volume Thus far, 1.7 million shares of LyondellBasell Industries exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $60.81-$62.61 after having opened the day at $62.45 as compared to the previous trading day's close of $61.75.

LyondellBasell Industries N.V., together with its subsidiaries, manufacturers and sells chemicals and polymers; refines crude oil; produces gasoline blending components; and develops and licenses technologies for the production of polymers. LyondellBasell Industries has a market cap of $36.4 billion and is part of the chemicals industry. The company has a P/E ratio of 12.8, below the S&P 500 P/E ratio of 17.7. Shares are up 8.2% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate LyondellBasell Industries a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates LyondellBasell Industries as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full LyondellBasell Industries Ratings Report now.

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3. As of noon trading, Monsanto Company ( MON) is down $2.28 (-2.2%) to $103.51 on average volume Thus far, 1.2 million shares of Monsanto Company exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $103.37-$106.27 after having opened the day at $106.00 as compared to the previous trading day's close of $105.79.

Monsanto Company, together with its subsidiaries, provides agricultural products for farmers worldwide. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. Monsanto Company has a market cap of $56.6 billion and is part of the chemicals industry. The company has a P/E ratio of 25.3, above the S&P 500 P/E ratio of 17.7. Shares are up 11.8% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Monsanto Company a buy, 2 analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Monsanto Company 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Monsanto Company Ratings Report now.

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2. As of noon trading, Petroleo Brasileiro SA Petrobras ( PBR) is down $0.18 (-1.1%) to $16.24 on light volume Thus far, 3.7 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 17.4 million shares. The stock has ranged in price between $16.24-$16.51 after having opened the day at $16.46 as compared to the previous trading day's close of $16.42.

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 $108.1 billion and is part of the energy industry. The company has a P/E ratio of 5.4, below the S&P 500 P/E ratio of 17.7. Shares are down 15.7% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate Petroleo Brasileiro SA Petrobras a buy, no analysts rate it a sell, and 9 rate it a hold.

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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1. As of noon trading, Chesapeake Energy ( CHK) is down $0.42 (-2.1%) to $19.93 on light volume Thus far, 5.4 million shares of Chesapeake Energy exchanged hands as compared to its average daily volume of 15.4 million shares. The stock has ranged in price between $19.91-$20.50 after having opened the day at $20.42 as compared to the previous trading day's close of $20.35.

Chesapeake Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. The company also offers marketing, midstream, drilling, and other oilfield services. Chesapeake Energy has a market cap of $13.6 billion and is part of the energy industry. Shares are up 22.4% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Chesapeake Energy a buy, 1 analyst rates it a sell, and 16 rate it a hold.

TheStreet Ratings rates Chesapeake Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. Get the full Chesapeake Energy Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you are interested in one of these 5 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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