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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