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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 79 points (0.5%) at 15,295 as of Wednesday, May 15, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,703 issues advancing vs. 1,237 declining with 128 unchanged.

The Basic Materials sector currently sits down 0.41 versus the S&P 500, which is up 0.6%. On the negative front, top decliners within the sector include Barrick Gold Corporation ( ABX), down 3.27, Apache Corporation ( APA), down 1.42, Canadian Natural Resources ( CNQ), down 1.39, Schlumberger ( SLB), down 1.17 and Total ( TOT), down 0.87. Top gainers within the sector include YPF Sociedad Anonima ( YPF), up 8.2%, Valero Energy Corporation ( VLO), up 2.9%, Marathon Petroleum ( MPC), up 2.6%, Phillips 66 ( PSX), up 1.9% and Freeport-McMoRan Copper & Gold ( FCX), up 1.6%.

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

5. POSCO ( PKX) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, POSCO is down $0.96 (-1.3%) to $71.87 on light volume Thus far, 76,719 shares of POSCO exchanged hands as compared to its average daily volume of 291,600 shares. The stock has ranged in price between $71.56-$72.36 after having opened the day at $72.01 as compared to the previous trading day's close of $72.83.

POSCO engages in the manufacture and sale of steel products in Korea and internationally. POSCO has a market cap of $22.4 billion and is part of the metals & mining industry. The company has a P/E ratio of 5.9, below the S&P 500 P/E ratio of 17.7. Shares are down 11.3% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates POSCO as a hold. Among the primary strengths of the company is its attractive valuation levels, considering its current price compared to earnings, book value and other measures. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and feeble growth in the company's earnings per share. Get the full POSCO Ratings Report now.

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4. As of noon trading, Statoil ASA ( STO) is down $0.31 (-1.3%) to $23.52 on heavy volume Thus far, 1.5 million shares of Statoil ASA exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $23.44-$23.64 after having opened the day at $23.46 as compared to the previous trading day's close of $23.83.

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 $76.0 billion and is part of the energy industry. The company has a P/E ratio of 7.9, below the S&P 500 P/E ratio of 17.7. Shares are down 4.8% year to date as of the close of trading on Tuesday.

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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3. As of noon trading, Royal Dutch Shell ( RDS.A) is down $0.91 (-1.3%) to $67.94 on average volume Thus far, 1.8 million shares of Royal Dutch Shell exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $67.71-$68.26 after having opened the day at $68.02 as compared to the previous trading day's close of $68.85.

Royal Dutch Shell plc operates as an independent oil and gas company worldwide. The company explores for and extracts crude oil, natural gas, and natural gas liquids. Royal Dutch Shell has a market cap of $220.3 billion and is part of the energy industry. The company has a P/E ratio of 8.7, below the S&P 500 P/E ratio of 17.7. Shares are up 1.2% year to date as of the close of trading on Tuesday.

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

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2. As of noon trading, Goldcorp ( GG) is down $0.96 (-3.3%) to $27.79 on average volume Thus far, 4.8 million shares of Goldcorp exchanged hands as compared to its average daily volume of 7.3 million shares. The stock has ranged in price between $27.56-$28.30 after having opened the day at $28.16 as compared to the previous trading day's close of $28.75.

Goldcorp Inc. engages in the acquisition, development, exploration, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It primarily explores for gold ores, as well as for silver, copper, lead, and zinc ores. Goldcorp has a market cap of $23.7 billion and is part of the metals & mining industry. The company has a P/E ratio of 16.5, below the S&P 500 P/E ratio of 17.7. Shares are down 21.7% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Goldcorp as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity. Get the full Goldcorp 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.

1. As of noon trading, Newmont Mining Corporation ( NEM) is down $0.82 (-2.5%) to $31.69 on average volume Thus far, 4.6 million shares of Newmont Mining Corporation exchanged hands as compared to its average daily volume of 8.8 million shares. The stock has ranged in price between $31.50-$32.28 after having opened the day at $32.10 as compared to the previous trading day's close of $32.51.

Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company's assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Mexico, and New Zealand. Newmont Mining Corporation has a market cap of $16.1 billion and is part of the metals & mining industry. The company has a P/E ratio of 9.9, below the S&P 500 P/E ratio of 17.7. Shares are down 30.0% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Newmont Mining Corporation as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share. Get the full Newmont Mining Corporation 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 4 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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