4 Stocks Pulling The 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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading down 3 points (0.0%) at 14,544 as of Monday, April 22, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,423 issues advancing vs. 1,490 declining with 125 unchanged.

The Basic Materials sector currently sits up 0.1% versus the S&P 500, which is up 0.3%. A company within the sector that fell today was Freeport-McMoRan Copper & Gold ( FCX), up 0.35. Top gainers within the sector include Halliburton Company ( HAL), up 4.9%, Randgold Resources ( GOLD), up 4.0%, Marathon Petroleum ( MPC), up 2.2%, LyondellBasell Industries ( LYB), up 2.1% and Goldcorp ( GG), up 1.8%.

TheStreet Ratings group would like to highlight 4 stocks pushing the sector lower today:

4. Ultrapar Holdings ( UGP) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Ultrapar Holdings is down $0.47 (-1.8%) to $26.12 on heavy volume Thus far, 312,544 shares of Ultrapar Holdings exchanged hands as compared to its average daily volume of 389,400 shares. The stock has ranged in price between $25.99-$26.25 after having opened the day at $26.01 as compared to the previous trading day's close of $26.59.

Ultrapar Holdings Inc., through its subsidiaries, operates in the petrochemicals industry. Ultrapar Holdings has a market cap of $14.4 billion and is part of the energy industry. The company has a P/E ratio of 31.2, above the S&P 500 P/E ratio of 17.7. Shares are up 19.3% year to date as of the close of trading on Friday.

TheStreet Ratings rates Ultrapar Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. 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 Ultrapar Holdings Ratings Report now.

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3. As of noon trading, Statoil ASA ( STO) is down $0.12 (-0.5%) to $23.33 on heavy volume Thus far, 1.3 million shares of Statoil ASA exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $23.15-$23.33 after having opened the day at $23.24 as compared to the previous trading day's close of $23.45.

Statoil ASA, an integrated energy company, engages in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products in Norway and internationally. Statoil ASA has a market cap of $73.6 billion and is part of the energy industry. The company has a P/E ratio of 7.6, below the S&P 500 P/E ratio of 17.7. Shares are down 6.3% year to date as of the close of trading on Friday.

TheStreet Ratings rates Statoil ASA as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Get the full Statoil ASA Ratings Report now.

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2. As of noon trading, ArcelorMittal ( MT) is down $0.17 (-1.5%) to $11.51 on average volume Thus far, 3.8 million shares of ArcelorMittal exchanged hands as compared to its average daily volume of 8.1 million shares. The stock has ranged in price between $11.38-$11.62 after having opened the day at $11.58 as compared to the previous trading day's close of $11.68.

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 $17.7 billion and is part of the metals & mining industry. Shares are down 33.5% year to date as of the close of trading on Friday.

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, Barrick Gold Corporation ( ABX) is down $0.42 (-2.3%) to $17.75 on heavy volume Thus far, 16.0 million shares of Barrick Gold Corporation exchanged hands as compared to its average daily volume of 14.2 million shares. The stock has ranged in price between $17.60-$18.81 after having opened the day at $18.81 as compared to the previous trading day's close of $18.17.

Barrick Gold Corporation engages in the production and sale of gold and copper. It is also involved in exploration and mine development activities. Barrick Gold Corporation has a market cap of $18.0 billion and is part of the metals & mining industry. Shares are down 48.1% year to date as of the close of trading on Friday.

TheStreet Ratings rates Barrick Gold Corporation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Get the full Barrick Gold Corporation 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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