5 Chemicals Stocks Dragging The Industry Down

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 142 points (1.0%) at 14,816 as of Wednesday, April 10, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 2,253 issues advancing vs. 654 declining with 139 unchanged.

The Chemicals industry currently sits up 0.7% versus the S&P 500, which is up 1.2%. A company within the industry that fell today was Sociedad Quimica Y Minera De Chile ( SQM), up 1.56. Top gainers within the industry include Braskem ( BAK), up 4.0%, Dow Chemical ( DOW), up 1.1% and Praxair ( PX), up 0.9%.

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

5. W. R. Grace ( GRA) is one of the companies pushing the Chemicals industry lower today. As of noon trading, W. R. Grace is down $2.11 (-2.8%) to $73.84 on heavy volume Thus far, 1.4 million shares of W. R. Grace exchanged hands as compared to its average daily volume of 538,500 shares. The stock has ranged in price between $72.00-$74.25 after having opened the day at $72.40 as compared to the previous trading day's close of $75.95.

W.R. Grace & Co. engages in the production and sale of specialty chemicals and materials worldwide. W. R. Grace has a market cap of $5.8 billion and is part of the basic materials sector. The company has a P/E ratio of 61.9, above the S&P 500 P/E ratio of 17.7. Shares are up 13.0% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates W. R. Grace as a sell. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time. Get the full W. R. Grace Ratings Report now.

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4. As of noon trading, Westlake Chemical Corporation ( WLK) is down $0.72 (-0.8%) to $86.04 on light volume Thus far, 178,513 shares of Westlake Chemical Corporation exchanged hands as compared to its average daily volume of 491,200 shares. The stock has ranged in price between $85.40-$87.21 after having opened the day at $87.21 as compared to the previous trading day's close of $86.76.

Westlake Chemical Corporation manufactures and markets basic chemicals, vinyls, polymers, and fabricated building products. It operates in two segments, Olefins and Vinyls. Westlake Chemical Corporation has a market cap of $5.7 billion and is part of the basic materials sector. The company has a P/E ratio of 14.9, below the S&P 500 P/E ratio of 17.7. Shares are up 9.4% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Westlake Chemical Corporation 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, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Westlake Chemical Corporation Ratings Report now.

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3. As of noon trading, Agrium ( AGU) is down $0.72 (-0.8%) to $94.32 on heavy volume Thus far, 1.5 million shares of Agrium exchanged hands as compared to its average daily volume of 972,300 shares. The stock has ranged in price between $94.14-$95.32 after having opened the day at $94.53 as compared to the previous trading day's close of $95.04.

Agrium Inc. engages in the retail of agricultural products and services. The company operates through three segments: Retail, Wholesale, and Advanced Technologies. Agrium has a market cap of $14.6 billion and is part of the basic materials sector. The company has a P/E ratio of 10.2, below the S&P 500 P/E ratio of 17.7. Shares are down 4.8% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Agrium as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share, increase in net income, revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Agrium Ratings Report now.

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2. As of noon trading, Eastman Chemical Company ( EMN) is down $0.44 (-0.6%) to $68.11 on average volume Thus far, 618,530 shares of Eastman Chemical Company exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $67.73-$68.75 after having opened the day at $68.67 as compared to the previous trading day's close of $68.55.

Eastman Chemical Company, a specialty chemical company, engages in the manufacture and sale of chemicals, plastics, and fibers in the United States and internationally. Eastman Chemical Company has a market cap of $10.5 billion and is part of the basic materials sector. The company has a P/E ratio of 23.2, above the S&P 500 P/E ratio of 17.7. Shares are up 0.7% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Eastman Chemical Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Eastman Chemical Company 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.

1. As of noon trading, CF Industries Holdings ( CF) is down $0.73 (-0.4%) to $190.25 on average volume Thus far, 533,984 shares of CF Industries Holdings exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $188.70-$192.17 after having opened the day at $191.40 as compared to the previous trading day's close of $190.98.

CF Industries Holdings, Inc. manufactures and distributes nitrogen and phosphate fertilizer products worldwide. It operates in two segments, Nitrogen and Phosphate. CF Industries Holdings has a market cap of $11.5 billion and is part of the basic materials sector. The company has a P/E ratio of 6.6, below the S&P 500 P/E ratio of 17.7. Shares are down 6.0% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates CF Industries Holdings as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations, expanding profit margins and increase in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full CF Industries Holdings 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 chemicals industry could consider Materials Select Sector SPDR ( XLB) while those bearish on the chemicals industry 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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