Silver Wheaton Corporation (SLW): 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

Silver Wheaton Corporation ( SLW) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 0.9%. By the end of trading, Silver Wheaton Corporation rose $0.96 (4.1%) to $24.36 on average volume. Throughout the day, 6,772,960 shares of Silver Wheaton Corporation exchanged hands as compared to its average daily volume of 5,800,300 shares. The stock ranged in a price between $23.65-$24.42 after having opened the day at $23.88 as compared to the previous trading day's close of $23.40. Other companies within the Basic Materials sector that increased today were: Great Basin Gold ( GBG), up 25.0%, Lake Shore Gold ( LSG), up 18.3%, Syntroleum Corporation ( SYNM), up 17.7% and Almaden Minerals ( AAU), up 15.4%.
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Silver Wheaton Corp., together with its subsidiaries, operates as silver and gold streaming company worldwide. The company has 20 long-term purchase agreements associated with silver and gold relating to 23 mining assets. Silver Wheaton Corporation has a market cap of $8.0 billion and is part of the metals & mining industry. The company has a P/E ratio of 14.0, below the S&P 500 P/E ratio of 17.7. Shares are down 37.6% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Silver Wheaton Corporation a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Silver Wheaton Corporation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

On the negative front, Tasman Metals ( TAS), down 8.8%, Houston American Energy Corporation ( HUSA), down 8.3%, CKX Lands ( CKX), down 8.0% and New Concept Energy ( GBR), down 6.7% , were all laggards within the basic materials sector with Kinder Morgan ( KMI) 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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