5 Stocks Dragging 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 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 Basic Materials sector currently sits up 0.2% versus the S&P 500, which is down 0.21. On the negative front, top decliners within the sector include Seadrill ( SDRL), down 2.52, Cenovus Energy ( CVE), down 1.47, Enbridge ( ENB), down 1.34, LyondellBasell Industries ( LYB), down 1.34 and National Oilwell Varco ( NOV), down 0.93. Top gainers within the sector include Apache Corporation ( APA), up 4.2%, CF Industries Holdings ( CF), up 2.8%, Chesapeake Energy ( CHK), up 2.8%, Williams Companies ( WMB), up 2.7% and Energy Transfer Partners L.P ( ETP), up 2.4%.

TheStreet Ratings group would like to highlight 5 stocks pushing the sector lower today:

5. PetroChina ( PTR) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, PetroChina is down $1.13 (-0.9%) to $130.90 on light volume Thus far, 33,730 shares of PetroChina exchanged hands as compared to its average daily volume of 97,800 shares. The stock has ranged in price between $130.64-$132.19 after having opened the day at $132.19 as compared to the previous trading day's close of $132.03.

PetroChina Company Limited produces and sells oil and gas in the People's Republic of China. The company operates in four segments: Exploration and Production, Refining and Chemicals, Marketing, and Natural Gas and Pipeline. PetroChina has a market cap of $236.1 billion and is part of the energy industry. The company has a P/E ratio of 204.8, above the S&P 500 P/E ratio of 17.7. Shares are down 8.2% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates PetroChina as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full PetroChina Ratings Report now.

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4. As of noon trading, Eni SpA ( E) is down $0.43 (-0.9%) to $48.41 on light volume Thus far, 74,041 shares of Eni SpA exchanged hands as compared to its average daily volume of 456,700 shares. The stock has ranged in price between $48.08-$48.56 after having opened the day at $48.54 as compared to the previous trading day's close of $48.84.

Eni SpA, an integrated energy company, engages in the exploration, production, transportation, transformation, and marketing of oil and natural gas. Eni SpA has a market cap of $88.3 billion and is part of the energy industry. The company has a P/E ratio of 5.0, below the S&P 500 P/E ratio of 17.7. Shares are down 0.6% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Eni SpA as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Eni SpA Ratings Report now.

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3. As of noon trading, Tesoro Corporation ( TSO) is down $1.69 (-3.0%) to $55.69 on average volume Thus far, 2.4 million shares of Tesoro Corporation exchanged hands as compared to its average daily volume of 3.6 million shares. The stock has ranged in price between $55.24-$57.69 after having opened the day at $57.29 as compared to the previous trading day's close of $57.38.

Tesoro Corporation, together with its subsidiaries, engages in refining and marketing petroleum products in the United States. It operates in two segments, Refining and Retail. Tesoro Corporation has a market cap of $7.9 billion and is part of the energy industry. The company has a P/E ratio of 10.5, below the S&P 500 P/E ratio of 17.7. Shares are up 30.3% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Tesoro Corporation 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Tesoro Corporation Ratings Report now.

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2. As of noon trading, EOG Resources ( EOG) is down $0.91 (-0.7%) to $136.99 on heavy volume Thus far, 1.7 million shares of EOG Resources exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $136.27-$139.00 after having opened the day at $139.00 as compared to the previous trading day's close of $137.90.

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 $36.9 billion and is part of the energy industry. The company has a P/E ratio of 49.7, above the S&P 500 P/E ratio of 17.7. Shares are up 14.2% year to date as of the close of trading on Wednesday.

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 increase in stock price during the past year. 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, Marathon Petroleum ( MPC) is down $0.74 (-0.9%) to $77.87 on average volume Thus far, 1.5 million shares of Marathon Petroleum exchanged hands as compared to its average daily volume of 3.7 million shares. The stock has ranged in price between $77.16-$78.60 after having opened the day at $78.40 as compared to the previous trading day's close of $78.61.

Marathon Petroleum Corporation, together with its subsidiaries, engages in refining, transporting, and marketing petroleum products primarily in the United States. It operates through Refining & Marketing, Speedway, and Pipeline Transportation segments. Marathon Petroleum has a market cap of $26.9 billion and is part of the energy industry. The company has a P/E ratio of 8.2, below the S&P 500 P/E ratio of 17.7. Shares are up 24.8% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Marathon Petroleum as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Get the full Marathon Petroleum 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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