Chesapeake Energy Corp (CHK): 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

Chesapeake Energy ( CHK) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 0.2%. By the end of trading, Chesapeake Energy rose $0.42 (1.9%) to $22.58 on average volume. Throughout the day, 15,493,664 shares of Chesapeake Energy exchanged hands as compared to its average daily volume of 12,050,500 shares. The stock ranged in a price between $22.02-$22.86 after having opened the day at $22.02 as compared to the previous trading day's close of $22.16. Other companies within the Basic Materials sector that increased today were: Cardero Resources Corporation ( CDY), up 14.0%, Golden Minerals ( AUMN), up 13.0%, Tanzanian Royalty Exploration Corporation ( TRX), up 11.5% and Hecla Mining Company ( HL), up 11.1%.
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Chesapeake Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. The company also offers marketing, midstream, drilling, and other oilfield services. Chesapeake Energy has a market cap of $14.4 billion and is part of the energy industry. Shares are up 30.4% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Chesapeake Energy a buy, 1 analyst rates it a sell, and 17 rate it a hold.

TheStreet Ratings rates Chesapeake Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, generally higher debt management risk and poor profit margins.

On the negative front, Great Basin Gold ( GBG), down 18.8%, Lone Pine Resources ( LPR), down 14.9%, China Shen Zhou Mining & Resources ( SHZ), down 13.9% and Kimber Resources ( KBX), down 13.0% , 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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