Southwestern Energy Company (SWN): 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

Southwestern Energy Company ( SWN) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 0.8%. By the end of trading, Southwestern Energy Company rose $0.54 (1.4%) to $37.96 on light volume. Throughout the day, 3,608,218 shares of Southwestern Energy Company exchanged hands as compared to its average daily volume of 4,823,800 shares. The stock ranged in a price between $37.22-$37.98 after having opened the day at $37.26 as compared to the previous trading day's close of $37.42. Other companies within the Basic Materials sector that increased today were: New Concept Energy ( GBR), up 25.7%, Cal Dive International ( DVR), up 19.4%, L & L Energy ( LLEN), up 15.4% and Ikonics Corporation ( IKNX), up 14.4%.
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Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas and oil primarily in the United States. The company operates through two segments, Exploration and Production, and Midstream Services. Southwestern Energy Company has a market cap of $12.8 billion and is part of the energy industry. Shares are up 12.0% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Southwestern Energy Company a buy, 1 analyst rates it a sell, and 19 rate it a hold.

TheStreet Ratings rates Southwestern Energy Company as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk.

On the negative front, Crosshair Energy ( CXZ), down 20.8%, Cubic Energy ( QBC), down 17.3%, Tasman Metals ( TAS), down 15.1% and Lake Shore Gold ( LSG), down 14.4% , were all laggards within the basic materials sector with Apache Corporation ( APA) 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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