Chesapeake Energy Corp (CHK): Today's Featured Basic Materials Winner

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

Chesapeake Energy ( CHK) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 0.9%. By the end of trading, Chesapeake Energy rose $0.49 (2.6%) to $18.96 on light volume. Throughout the day, 10,264,944 shares of Chesapeake Energy exchanged hands as compared to its average daily volume of 14,198,800 shares. The stock ranged in a price between $18.21-$19.13 after having opened the day at $18.51 as compared to the previous trading day's close of $18.47. Other companies within the Basic Materials sector that increased today were: Kimber Resources ( KBX), up 23.5%, Flexible Solutions International ( FSI), up 19.6%, SilverCrest Mines ( SVLC), up 16.5% and Crosshair Energy ( CXZ), up 14.6%.
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Chesapeake Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. The company also offers marketing, midstream, drilling, and other oilfield services. Chesapeake Energy has a market cap of $12.7 billion and is part of the energy industry. Shares are up 11.1% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Chesapeake Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

On the negative front, Gasco Energy ( GSX), down 20.8%, New Concept Energy ( GBR), down 17.0%, BMB Munai ( BMBM), down 16.2% and Andatee China Marine Fuel Services Corporat ( AMCF), down 14.8% , were all laggards within the basic materials sector with Albemarle ( ALB) 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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