Cytec Industries (CYT): Today's Featured Chemicals 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

Cytec Industries ( CYT) pushed the Chemicals industry higher today making it today's featured chemicals winner. The industry as a whole closed the day down 0.5%. By the end of trading, Cytec Industries rose $0.84 (1.2%) to $72.85 on average volume. Throughout the day, 644,637 shares of Cytec Industries exchanged hands as compared to its average daily volume of 555,300 shares. The stock ranged in a price between $71.75-$73.65 after having opened the day at $71.91 as compared to the previous trading day's close of $72.01. Other companies within the Chemicals industry that increased today were: Green Plains Renewable Energy ( GPRE), up 7.4%, Gevo ( GEVO), up 4.4%, Taminco ( TAM), up 2.9% and Rentech Nitrogen Partners ( RNF), up 2.8%.
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Cytec Industries Inc., a specialty chemicals and materials company, engages in developing, manufacturing, and selling chemical products primarily for aerospace composites, structural adhesives, automotive and industrial coatings, electronics, inks, mining, and plastics markets. Cytec Industries has a market cap of $3.0 billion and is part of the basic materials sector. The company has a P/E ratio of 47.2, above the S&P 500 P/E ratio of 17.7. Shares are up 4.6% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Cytec Industries a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Cytec Industries 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, good cash flow from operations, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Pure Bioscience ( PURE), down 17.0%, Ikonics Corporation ( IKNX), down 8.8%, REX American Resources ( REX), down 7.4% and Flexible Solutions International ( FSI), down 6.2% , were all laggards within the chemicals industry with Sherwin-Williams Company ( SHW) being today's chemicals industry laggard.

For investors not wanting singular stock exposure, 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).

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