Helmerich & Payne Inc. (HP): 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

Helmerich & Payne ( HP) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 0.4%. By the end of trading, Helmerich & Payne rose $0.98 (1.6%) to $62.97 on light volume. Throughout the day, 1,054,155 shares of Helmerich & Payne exchanged hands as compared to its average daily volume of 1,470,900 shares. The stock ranged in a price between $61.78-$63.39 after having opened the day at $61.91 as compared to the previous trading day's close of $61.99. Other companies within the Basic Materials sector that increased today were: Crosshair Energy ( CXZ), up 19.6%, Saratoga Resources ( SARA), up 14.2%, Andatee China Marine Fuel Services Corporat ( AMCF), up 13.5% and TransAtlantic Petroleum ( TAT), up 10.6%.
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Helmerich & Payne, Inc. engages in the contract drilling of oil and gas wells. It provides drilling rigs, equipments, personnel, and camps on a contract basis to explore for and develop oil and gas from onshore areas and fixed platforms, tension-leg platforms, and spars in offshore areas. Helmerich & Payne has a market cap of $6.6 billion and is part of the energy industry. The company has a P/E ratio of 11.0, below the S&P 500 P/E ratio of 17.7. Shares are up 10.7% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Helmerich & Payne a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates Helmerich & Payne 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 attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Pure Bioscience ( PURE), down 17.0%, Houston American Energy Corporation ( HUSA), down 14.8%, Mines Management ( MGN), down 13.9% and Quest Rare Minerals ( QRM), down 10.9% , were all laggards within the basic materials sector with EOG Resources ( EOG) 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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