Silver Wheaton Corporation (SLW): Basic Materials' Highlighted Dud 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.

Silver Wheaton Corporation ( SLW) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 0.7%. By the end of trading, Silver Wheaton Corporation fell $1.54 (-5.2%) to $28.32 on heavy volume. Throughout the day, 7.2 million shares of Silver Wheaton Corporation exchanged hands as compared to its average daily volume of 3.8 million shares. The stock ranged in price between $28.23-$29.50 after having opened the day at $29.48 as compared to the previous trading day's close of $29.86. Other companies within the Basic Materials sector that declined today were: BMB Munai ( BMBM), down 17.6%, GeoGlobal Resources ( GGR), down 10.3%, Cubic Energy ( QBC), down 8.9%, and Asanko Gold ( AKG), down 8.6%.
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Silver Wheaton Corp., a mining company, together with its subsidiaries, operates as a silver streaming company worldwide. Silver Wheaton Corporation has a market cap of $10.2 billion and is part of the metals & mining industry. The company has a P/E ratio of 17.4, below the S&P 500 P/E ratio of 17.7. Shares are down 17.2% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate Silver Wheaton Corporation a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Silver Wheaton Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Royale Energy ( ROYL), up 67%, GeoPetro Resources Company ( GPR), up 24.7%, United States Antimony Corporation ( UAMY), up 17%, and KiOR ( KIOR), up 15.1%, were all gainers within the basic materials sector with Halliburton Company ( HAL) 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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