Delek US Holdings Inc. (DK): Today's Featured Basic Materials Underperformer

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.

Delek US Holdings ( DK) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 1.4%. By the end of trading, Delek US Holdings fell 56 cents (-1.5%) to $37.37 on light volume. Throughout the day, 488,009 shares of Delek US Holdings exchanged hands as compared to its average daily volume of 880,700 shares. The stock ranged in price between $37.36-$38.24 after having opened the day at $37.94 as compared to the previous trading day's close of $37.93. Other companies within the Basic Materials sector that declined today were: 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%.
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Delek US Holdings, Inc. operates as an integrated downstream energy company that operates in petroleum refining, logistics, and convenience store retailing businesses. The company operates in three segments: Refining, Logistics, and Retail. Delek US Holdings has a market cap of $2.2 billion and is part of the energy industry. The company has a P/E ratio of 8.1, below the S&P 500 P/E ratio of 17.7. Shares are up 49.8% year to date as of the close of trading on Monday. Currently there are three analysts that rate Delek US Holdings a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Delek US Holdings 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 notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, 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%, were all gainers within the basic materials sector with Dow Chemical ( DOW) being today's featured basic materials sector leader.

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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