HollyFrontier Corp (HFC): 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

HollyFrontier ( HFC) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 0.9%. By the end of trading, HollyFrontier rose $0.74 (1.5%) to $49.55 on average volume. Throughout the day, 4,577,440 shares of HollyFrontier exchanged hands as compared to its average daily volume of 3,980,800 shares. The stock ranged in a price between $48.51-$49.77 after having opened the day at $49.03 as compared to the previous trading day's close of $48.81. Other companies within the Basic Materials sector that increased today were: Recon Technology ( RCON), up 32.5%, China Shen Zhou Mining & Resources ( SHZ), up 21.7%, Crosshair Energy ( CXZ), up 20.0% and North American Energy Partners Incorporate ( NOA), up 18.6%.
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HollyFrontier Corporation operates as an independent petroleum refiner and marketer in the United States. It produces light products, such as gasoline, diesel fuel, jet fuel, specialty lubricant products, liquefied petroleum gas, fuel oil, and specialty and modified asphalt. HollyFrontier has a market cap of $10.1 billion and is part of the energy industry. The company has a P/E ratio of 5.6, below the S&P 500 P/E ratio of 17.7. Shares are up 4.9% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate HollyFrontier a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates HollyFrontier as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, GeoPetro Resources Company ( GPR), down 25.0%, Torch Energy Royalty ( TRU), down 23.3%, Whiting USA Trust I ( WHX), down 14.9% and FX Energy ( FXEN), down 13.9% , were all laggards within the basic materials sector with Petroleo Brasileiro SA Petrobras ( PBR) 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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