Anadarko Petroleum Corp (APC) Gains Contribute To Strong Performance

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.

Anadarko Petroleum ( APC) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 1.3%. By the end of trading, Anadarko Petroleum rose $2.69 (3.4%) to $82.16 on average volume. Throughout the day, 4.2 million shares of Anadarko Petroleum exchanged hands as compared to its average daily volume of 3.3 million shares. The stock ranged in a price between $80.56-$82.64 after having opened the day at $80.68 as compared to the previous trading day's close of $79.47. Other companies within the Basic Materials sector that increased today were: BMB Munai ( BMBM), up 19.4%, Syntroleum Corporation ( SYNM), up 17.1%, NovaCopper ( NCQ), up 16.6%, and Prospect Global Resources ( PGRX), up 15.3%.
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Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of natural gas, crude oil, condensate, and natural gas liquids (NGLs) in the United States and internationally. Anadarko Petroleum has a market cap of $43.34 billion and is part of the energy industry. The company has a P/E ratio of 18, above the S&P 500 P/E ratio of 17.7. Shares are up 14.8% year to date as of the close of trading on Monday. Currently there are 21 analysts that rate Anadarko Petroleum a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Anadarko Petroleum as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, increase in stock price during the past year, good cash flow from operations, expanding profit margins and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, China Shen Zhou Mining & Resources ( SHZ), down 33.1%, GeoGlobal Resources ( GGR), down 16.2%, Andatee China Marine Fuel Services Corporat ( AMCF), down 13.7%, and Solitario Exploration & Royalty ( XPL), down 10.9%, were all laggards within the basic materials sector with Molycorp ( MCP) 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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