Spectra Energy Corp (SE): Today's Featured Basic Materials Winner

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

Spectra Energy ( SE) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 0.5%. By the end of trading, Spectra Energy rose $0.32 (1.0%) to $31.11 on average volume. Throughout the day, 3,272,915 shares of Spectra Energy exchanged hands as compared to its average daily volume of 4,351,000 shares. The stock ranged in a price between $30.63-$31.15 after having opened the day at $30.80 as compared to the previous trading day's close of $30.79. Other companies within the Basic Materials sector that increased today were: BMB Munai ( BMBM), up 56.5%, Sutor Technology Group ( SUTR), up 19.2%, Ivanhoe Energy ( IVAN), up 17.4% and Flexible Solutions International ( FSI), up 13.6%.
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Spectra Energy Corp, through its subsidiaries, owns and operates a portfolio of natural gas-related energy assets in North America. The company's U.S. Spectra Energy has a market cap of $20.6 billion and is part of the energy industry. The company has a P/E ratio of 21.5, above the S&P 500 P/E ratio of 17.7. Shares are up 12.4% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Spectra Energy a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Spectra Energy as a buy. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Recon Technology ( RCON), down 14.1%, China Gengsheng Minerals ( CHGS), down 13.6%, Quest Rare Minerals ( QRM), down 10.1% and Double Eagle Petroleum Company ( DBLE), down 8.6% , were all laggards within the basic materials sector with Mosaic ( MOS) being today's basic materials sector laggard.

For investors not wanting singular stock exposure, 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).

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