3 Stocks Dragging In The Basic Materials Sector

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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 31 points (-0.2%) at 14,506 as of Friday, April 19, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,094 issues advancing vs. 778 declining with 149 unchanged.

The Basic Materials sector currently sits up 0.2% versus the S&P 500, which is up 0.7%. On the negative front, top decliners within the sector include Peabody Energy Corporation ( BTU), down 6.55, Apache Corporation ( APA), down 2.46, Devon Energy ( DVN), down 2.66, Suncor Energy ( SU), down 1.67 and Schlumberger ( SLB), down 1.31. Top gainers within the sector include LyondellBasell Industries ( LYB), up 3.0%, Petroleo Brasileiro SA Petrobras ( PBR.A), up 3.1%, Energy Transfer Equity ( ETE), up 2.5%, Sherwin-Williams Company ( SHW), up 2.3% and Plains All American Pipeline ( PAA), up 2.0%.

TheStreet Ratings group would like to highlight 3 stocks pushing the sector lower today:

3. Baker Hughes ( BHI) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Baker Hughes is down $0.89 (-2.0%) to $43.71 on heavy volume Thus far, 4.3 million shares of Baker Hughes exchanged hands as compared to its average daily volume of 3.6 million shares. The stock has ranged in price between $43.54-$45.85 after having opened the day at $45.62 as compared to the previous trading day's close of $44.60.

Baker Hughes Incorporated supplies oilfield services, products, and technology services and systems to the oil and natural gas industry worldwide. Baker Hughes has a market cap of $19.5 billion and is part of the energy industry. The company has a P/E ratio of 14.8, below the S&P 500 P/E ratio of 17.7. Shares are up 9.2% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Baker Hughes 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, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full Baker Hughes Ratings Report now.

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2. As of noon trading, EOG Resources ( EOG) is down $1.43 (-1.2%) to $113.88 on average volume Thus far, 1.2 million shares of EOG Resources exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $113.53-$116.28 after having opened the day at $116.18 as compared to the previous trading day's close of $115.31.

EOG Resources, Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of crude oil and natural gas. EOG Resources has a market cap of $31.2 billion and is part of the energy industry. The company has a P/E ratio of 54.4, above the S&P 500 P/E ratio of 17.7. Shares are down 4.5% year to date as of the close of trading on Thursday.

TheStreet Ratings rates EOG Resources as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures 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 EOG Resources Ratings Report now.

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1. As of noon trading, Halliburton Company ( HAL) is down $0.46 (-1.2%) to $37.26 on average volume Thus far, 8.9 million shares of Halliburton Company exchanged hands as compared to its average daily volume of 11.9 million shares. The stock has ranged in price between $37.22-$38.49 after having opened the day at $38.15 as compared to the previous trading day's close of $37.71.

Halliburton Company provides a range of services and products for the exploration, development, and production of oil and natural gas. The company operates in two segments, Completion and Production, and Drilling and Evaluation. Halliburton Company has a market cap of $35.1 billion and is part of the energy industry. The company has a P/E ratio of 13.6, below the S&P 500 P/E ratio of 17.7. Shares are up 8.7% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Halliburton Company 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, attractive valuation levels, 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 Halliburton 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.

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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