4 Stocks Dragging In The Chemicals Industry

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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 14 points (0.1%) at 15,368 as of Monday, May 20, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,885 issues advancing vs. 1,048 declining with 118 unchanged.

The Chemicals industry currently sits up 0.5% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the industry include Valhi ( VHI), down 2.32, Sherwin-Williams Company ( SHW), down 0.85 and PPG Industries ( PPG), down 0.81. A company within the industry that increased today was Mosaic ( MOS), up 1.15.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. Terra Nitrogen Company L.P ( TNH) is one of the companies pushing the Chemicals industry lower today. As of noon trading, Terra Nitrogen Company L.P is down $2.80 (-1.3%) to $215.20 on average volume Thus far, 11,251 shares of Terra Nitrogen Company L.P exchanged hands as compared to its average daily volume of 19,600 shares. The stock has ranged in price between $213.51-$218.00 after having opened the day at $218.00 as compared to the previous trading day's close of $218.00.

Terra Nitrogen Company, L.P. engages in the production and sale of nitrogen fertilizer products. It primarily offers anhydrous ammonia and urea ammonium nitrate solutions. Terra Nitrogen GP Inc. serves as the general partner of the company. Terra Nitrogen Company, L.P. Terra Nitrogen Company L.P has a market cap of $4.1 billion and is part of the basic materials sector. The company has a P/E ratio of 12.1, below the S&P 500 P/E ratio of 17.7. Shares are up 1.8% year to date as of the close of trading on Friday.

TheStreet Ratings rates Terra Nitrogen Company L.P 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, impressive record of earnings per share growth, expanding profit margins and increase in stock price during the past year. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Terra Nitrogen Company L.P Ratings Report now.

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3. As of noon trading, Albemarle ( ALB) is down $0.74 (-1.1%) to $66.60 on average volume Thus far, 286,535 shares of Albemarle exchanged hands as compared to its average daily volume of 737,200 shares. The stock has ranged in price between $66.55-$67.21 after having opened the day at $67.19 as compared to the previous trading day's close of $67.34.

Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals. Albemarle has a market cap of $5.8 billion and is part of the basic materials sector. The company has a P/E ratio of 21.1, above the S&P 500 P/E ratio of 17.7. Shares are up 8.4% year to date as of the close of trading on Friday.

TheStreet Ratings rates Albemarle as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Albemarle Ratings Report now.

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2. As of noon trading, Axiall ( AXLL) is down $1.05 (-2.1%) to $48.74 on average volume Thus far, 984,332 shares of Axiall exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $48.28-$49.86 after having opened the day at $49.40 as compared to the previous trading day's close of $49.79.

Axiall Corporation operates as an integrated chemicals and building products company in North America and Asia. Axiall has a market cap of $3.4 billion and is part of the basic materials sector. The company has a P/E ratio of 20.5, above the S&P 500 P/E ratio of 17.7. Shares are up 18.3% year to date as of the close of trading on Friday.

TheStreet Ratings rates Axiall as a hold. 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 and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and poor profit margins. Get the full Axiall Ratings Report now.

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1. As of noon trading, Eastman Chemical Company ( EMN) is down $0.46 (-0.6%) to $73.49 on average volume Thus far, 734,020 shares of Eastman Chemical Company exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $73.12-$73.99 after having opened the day at $73.93 as compared to the previous trading day's close of $73.95.

Eastman Chemical Company, a specialty chemical company, engages in the manufacture and sale of chemicals, plastics, and fibers in the United States and internationally. Eastman Chemical Company has a market cap of $11.1 billion and is part of the basic materials sector. The company has a P/E ratio of 21.2, above the S&P 500 P/E ratio of 17.7. Shares are up 8.7% year to date as of the close of trading on Friday.

TheStreet Ratings rates Eastman Chemical Company as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, solid stock price performance, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Eastman Chemical Company Ratings Report now.

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If you are interested in one of these 5 stocks, 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).

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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