3 Chemicals Stocks Pushing The Industry Higher

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 lower today with the Dow Jones Industrial Average ( ^DJI) trading down 5 points (0.0%) at 15,100 as of Thursday, May 9, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,176 issues advancing vs. 1,742 declining with 136 unchanged.

The Chemicals industry currently is unchanged today versus the S&P 500, which is down 0.21. Top gainers within the industry include Williams Partners ( WPZ), up 1.3%, and E.I. du Pont de Nemours & Company ( DD), up 1.0%. On the negative front, top decliners within the industry include LyondellBasell Industries ( LYB), down 1.34, and PPG Industries ( PPG), down 0.73.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry higher today:

3. Terra Nitrogen Company L.P ( TNH) is one of the companies pushing the Chemicals industry higher today. As of noon trading, Terra Nitrogen Company L.P is up $7.47 (3.49) to $221.25 on heavy volume Thus far, 34,487 shares of Terra Nitrogen Company L.P exchanged hands as compared to its average daily volume of 19,600 shares. The stock has ranged in price between $217.50-$221.83 after having opened the day at $218.00 as compared to the previous trading day's close of $213.78.

Terra Nitrogen Company, L.P. engages in the production and sale of nitrogen fertilizer products. It primarily offers anhydrous ammonia and urea ammonium nitrate solutions. Terra Nitrogen GP Inc. serves as the general partner of the company. Terra Nitrogen Company, L.P. Terra Nitrogen Company L.P has a market cap of $3.9 billion and is part of the basic materials sector. The company has a P/E ratio of 12.2, below the S&P 500 P/E ratio of 17.7. Shares are down 0.1% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Terra Nitrogen Company L.P 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, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Terra Nitrogen Company L.P Ratings Report now.

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2. As of noon trading, CF Industries Holdings ( CF) is up $5.41 (2.84) to $196.12 on average volume Thus far, 823,957 shares of CF Industries Holdings exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $191.00-$197.38 after having opened the day at $191.54 as compared to the previous trading day's close of $190.71.

CF Industries Holdings, Inc. manufactures and distributes nitrogen and phosphate fertilizer products worldwide. It operates in two segments, Nitrogen and Phosphate. CF Industries Holdings has a market cap of $11.3 billion and is part of the basic materials sector. The company has a P/E ratio of 6.5, below the S&P 500 P/E ratio of 17.7. Shares are down 6.1% year to date as of the close of trading on Wednesday. Currently there are 7 analysts that rate CF Industries Holdings a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates CF Industries Holdings as a buy. 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, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full CF Industries Holdings Ratings Report now.

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1. As of noon trading, Dow Chemical ( DOW) is up $0.50 (1.45) to $35.01 on average volume Thus far, 4.6 million shares of Dow Chemical exchanged hands as compared to its average daily volume of 7.7 million shares. The stock has ranged in price between $34.35-$35.03 after having opened the day at $34.43 as compared to the previous trading day's close of $34.51.

The Dow Chemical Company manufactures and supplies chemical products used as raw materials in the manufacture of customer products and services worldwide. Dow Chemical has a market cap of $41.8 billion and is part of the basic materials sector. The company has a P/E ratio of 42.1, above the S&P 500 P/E ratio of 17.7. Shares are up 6.7% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Dow Chemical a buy, 4 analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Dow Chemical as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Dow Chemical Ratings Report now.

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If you are interested in one of these 3 stocks, ETFs may be of interest. Investors who are bullish on the chemicals industry could consider Materials Select Sector SPDR ( XLB) while those bearish on the chemicals industry 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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