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 15,467 as of Wednesday, May 22, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,746 issues advancing vs. 1,183 declining with 133 unchanged.

The Basic Materials sector currently sits up 0.6% versus the S&P 500, which is up 0.5%. On the negative front, top decliners within the sector include Potash Corporation of Saskatchewan ( POT), down 1.00, PetroChina ( PTR), down 1.14, Petroleo Brasileiro SA Petrobras ( PBR.A), down 1.16, EOG Resources ( EOG), down 0.60 and Monsanto Company ( MON), down 0.59. Top gainers within the sector include Kinross Gold Corporation ( KGC), up 7.1%, Pioneer Natural Resources Company ( PXD), up 4.8%, Chesapeake Energy ( CHK), up 2.7%, Ecopetrol S.A ( EC), up 2.0% and Energy Transfer Equity ( ETE), up 1.5%.

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

5. Imperial Oil ( IMO) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Imperial Oil is down $0.24 (-0.6%) to $39.50 on light volume Thus far, 89,142 shares of Imperial Oil exchanged hands as compared to its average daily volume of 290,000 shares. The stock has ranged in price between $39.33-$40.21 after having opened the day at $39.69 as compared to the previous trading day's close of $39.74.

Imperial Oil Limited engages in the exploration, production, and sale of crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream, and Chemical. Imperial Oil has a market cap of $33.5 billion and is part of the energy industry. The company has a P/E ratio of 9.6, below the S&P 500 P/E ratio of 17.7. Shares are down 8.1% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Imperial Oil as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and poor profit margins. Get the full Imperial Oil Ratings Report now.

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