3 Stocks Pushing The Chemicals Industry Lower

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. On the negative front, top decliners within the industry include LyondellBasell Industries ( LYB), down 1.27, and PPG Industries ( PPG), down 0.63.

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

3. Braskem ( BAK) is one of the companies pushing the Chemicals industry lower today. As of noon trading, Braskem is down $0.32 (-1.8%) to $17.03 on heavy volume Thus far, 331,898 shares of Braskem exchanged hands as compared to its average daily volume of 353,600 shares. The stock has ranged in price between $16.78-$17.10 after having opened the day at $16.90 as compared to the previous trading day's close of $17.35.

Braskem S.A., together with its subsidiaries, produces and sells basic petrochemicals and thermoplastic resins in Brazil and internationally. It operates in three segments: Basic Petrochemicals, Polyolefins, and Vinyls. Braskem has a market cap of $6.9 billion and is part of the basic materials sector. The company has a P/E ratio of 8.6, below the S&P 500 P/E ratio of 17.7. Shares are up 30.0% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Braskem as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins. Get the full Braskem Ratings Report now.

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2. As of noon trading, Eastman Chemical Company ( EMN) is down $1.00 (-1.4%) to $67.60 on average volume Thus far, 789,266 shares of Eastman Chemical Company exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $67.38-$68.69 after having opened the day at $68.65 as compared to the previous trading day's close of $68.60.

Eastman Chemical Company, a specialty chemical company, engages in the manufacture and sale of chemicals, plastics, and fibers in the United States and internationally. Eastman Chemical Company has a market cap of $10.7 billion and is part of the basic materials sector. The company has a P/E ratio of 20.6, above the S&P 500 P/E ratio of 17.7. Shares are up 0.8% year to date as of the close of trading on Wednesday.

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

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1. As of noon trading, Monsanto Company ( MON) is down $0.64 (-0.6%) to $107.64 on light volume Thus far, 671,140 shares of Monsanto Company exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $107.33-$108.63 after having opened the day at $108.35 as compared to the previous trading day's close of $108.29.

Monsanto Company, together with its subsidiaries, provides agricultural products for farmers worldwide. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. Monsanto Company has a market cap of $57.6 billion and is part of the basic materials sector. The company has a P/E ratio of 23.1, above the S&P 500 P/E ratio of 17.7. Shares are up 14.4% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Monsanto 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, solid stock price performance, impressive record of earnings per share growth and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Monsanto Company 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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