Dow Chemical Co (DOW): Basic Materials' Featured Winner Of The Day

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.

Dow Chemical ( DOW) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 1.4%. By the end of trading, Dow Chemical rose 76 cents (2.5%) to $31.44 on average volume. Throughout the day, six million shares of Dow Chemical exchanged hands as compared to its average daily volume of 7.8 million shares. The stock ranged in a price between $30.77-$31.49 after having opened the day at $30.83 as compared to the previous trading day's close of $30.68. Other companies within the Basic Materials sector that increased today were: GeoGlobal Resources ( GGR), up 44.4%, Allied Nevada Gold ( ANV), up 30.2%, Tasman Metals ( TAS), up 15%, and BMB Munai ( BMBM), up 11.6%.
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The Dow Chemical Company manufactures and supplies chemical products used as raw materials in the manufacture of customer products and services worldwide. Dow Chemical has a market cap of $37.33 billion and is part of the chemicals industry. The company has a P/E ratio of 44.1, above the S&P 500 P/E ratio of 17.7. Shares are down 5.1% year to date as of the close of trading on Monday. Currently there are two analysts that rate Dow Chemical a buy, four analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Dow Chemical as a buy. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Crosshair Energy ( CXZ), down 41.1%, A Schulman ( SHLM), down 12.8%, Sutor Technology Group ( SUTR), down 10.6%, and Camac Energy ( CAK), down 8.4%, were all laggards within the basic materials sector with Delek US Holdings ( DK) 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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