TCK, SCCO, CLR, MT And FCX, Pushing 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 64 points (0.4%) at 14,866 as of Thursday, April 11, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,808 issues advancing vs. 1,100 declining with 140 unchanged.

The Basic Materials sector currently sits down 0.24 versus the S&P 500, which is up 0.4%. On the negative front, top decliners within the sector include Valero Energy Corporation ( VLO), down 4.12, HollyFrontier ( HFC), down 4.14, Marathon Petroleum ( MPC), down 3.72, Petroleo Brasileiro SA Petrobras ( PBR.A), down 1.89 and PetroChina ( PTR), down 0.97. Top gainers within the sector include Occidental Petroleum Corporation ( OXY), up 3.7%, Southwestern Energy Company ( SWN), up 2.8%, PPG Industries ( PPG), up 2.3%, Total ( TOT), up 1.2% and Chevron ( CVX), up 0.9%.

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

5. Teck Resources ( TCK) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Teck Resources is down $0.53 (-1.8%) to $28.21 on average volume Thus far, 1.6 million shares of Teck Resources exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $28.10-$28.67 after having opened the day at $28.63 as compared to the previous trading day's close of $28.74.

Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in the Americas, Asia Pacific, Europe, and Africa. Teck Resources has a market cap of $16.5 billion and is part of the metals & mining industry. The company has a P/E ratio of 20.8, above the S&P 500 P/E ratio of 17.7. Shares are down 20.9% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Teck Resources as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and disappointing return on equity. Get the full Teck Resources Ratings Report now.

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4. As of noon trading, Southern Copper Corporation ( SCCO) is down $0.46 (-1.3%) to $35.79 on light volume Thus far, 528,131 shares of Southern Copper Corporation exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $35.67-$36.23 after having opened the day at $36.17 as compared to the previous trading day's close of $36.25.

Southern Copper Corporation engages in mining, exploring, producing, smelting, and refining copper and other minerals in Peru, Mexico, and Chile. Southern Copper Corporation has a market cap of $30.5 billion and is part of the metals & mining industry. The company has a P/E ratio of 15.8, below the S&P 500 P/E ratio of 17.7. Shares are down 4.3% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Southern Copper Corporation as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Southern Copper Corporation Ratings Report now.

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3. As of noon trading, Continental Resources ( CLR) is down $1.80 (-2.2%) to $81.28 on average volume Thus far, 537,538 shares of Continental Resources exchanged hands as compared to its average daily volume of 956,700 shares. The stock has ranged in price between $80.70-$83.39 after having opened the day at $83.15 as compared to the previous trading day's close of $83.08.

Continental Resources, Inc. engages in the exploration, development, and production of crude oil and natural gas properties in the north, south, and east regions of the United States. Continental Resources has a market cap of $15.7 billion and is part of the energy industry. The company has a P/E ratio of 20.8, 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 Wednesday.

TheStreet Ratings rates Continental Resources as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Continental Resources Ratings Report now.

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2. As of noon trading, ArcelorMittal ( MT) is down $0.20 (-1.6%) to $12.33 on average volume Thus far, 3.8 million shares of ArcelorMittal exchanged hands as compared to its average daily volume of 8.2 million shares. The stock has ranged in price between $12.29-$12.48 after having opened the day at $12.32 as compared to the previous trading day's close of $12.53.

ArcelorMittal, together with its subsidiaries, operates as an integrated steel and mining company worldwide. The company operates through six segments: Flat Carbon Americas; Flat Carbon Europe; Long Carbon Americas and Europe; Asia, Africa, and CIS; Distribution Solutions; and Mining. ArcelorMittal has a market cap of $19.9 billion and is part of the metals & mining industry. Shares are down 28.3% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates ArcelorMittal as a hold. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full ArcelorMittal Ratings Report now.

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1. As of noon trading, Freeport-McMoRan Copper & Gold ( FCX) is down $0.33 (-1.0%) to $33.05 on average volume Thus far, 7.1 million shares of Freeport-McMoRan Copper & Gold exchanged hands as compared to its average daily volume of 14.6 million shares. The stock has ranged in price between $32.80-$33.41 after having opened the day at $33.31 as compared to the previous trading day's close of $33.38.

Freeport-McMoRan Copper & Gold Inc. engages in the exploration of mineral resource properties. The company primarily explores for copper, gold, molybdenum, cobalt, silver, and other metals, such as rhenium and magnetite. Freeport-McMoRan Copper & Gold has a market cap of $32.1 billion and is part of the metals & mining industry. The company has a P/E ratio of 10.6, below the S&P 500 P/E ratio of 17.7. Shares are down 1.5% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Freeport-McMoRan Copper & Gold 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, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Freeport-McMoRan Copper & Gold Ratings Report now.

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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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