5 Chemicals Stocks Dragging The Industry Down

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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 46 points (-0.3%) at 15,208 as of Tuesday, June 4, 2013, 12:49 PM ET. The NYSE advances/declines ratio sits at 1,093 issues advancing vs. 1,832 declining with 114 unchanged.

The Chemicals industry currently sits down 0.41 versus the S&P 500, which is down 0.24. A company within the industry that increased today was Williams Partners ( WPZ), up 0.56.

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

5. Braskem ( BAK) is one of the companies pushing the Chemicals industry lower today. As of noon trading, Braskem is down $0.29 (-1.9%) to $15.26 on average volume Thus far, 178,386 shares of Braskem exchanged hands as compared to its average daily volume of 335,800 shares. The stock has ranged in price between $15.24-$15.64 after having opened the day at $15.59 as compared to the previous trading day's close of $15.55.

Braskem S.A., together with its subsidiaries, produces and sells basic petrochemicals and thermoplastic resins in Brazil and internationally. It operates in three segments: Basic Petrochemicals, Polyolefins, and Vinyls. Braskem has a market cap of $6.3 billion and is part of the basic materials sector. The company has a P/E ratio of 8.6, below the S&P 500 P/E ratio of 17.7. Shares are up 18.0% year to date as of the close of trading on Monday. Currently there is 1 analyst that rates Braskem a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Braskem as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow. Get the full Braskem Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

4. As of noon trading, Sociedad Quimica Y Minera De Chile ( SQM) is down $0.55 (-1.2%) to $45.79 on light volume Thus far, 116,686 shares of Sociedad Quimica Y Minera De Chile exchanged hands as compared to its average daily volume of 500,300 shares. The stock has ranged in price between $45.73-$46.37 after having opened the day at $46.27 as compared to the previous trading day's close of $46.34.

Chemical and Mining Company of Chile Inc. engages in the production and distribution of specialty plant nutrients, iodine and its derivatives, lithium and its derivatives, potassium chloride and potassium sulfate, industrial chemicals, and other commodity fertilizers. Sociedad Quimica Y Minera De Chile has a market cap of $12.2 billion and is part of the basic materials sector. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are down 19.6% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate Sociedad Quimica Y Minera De Chile a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Sociedad Quimica Y Minera De Chile 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, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Sociedad Quimica Y Minera De Chile Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

3. As of noon trading, Sherwin-Williams Company ( SHW) is down $3.57 (-1.9%) to $183.73 on light volume Thus far, 234,067 shares of Sherwin-Williams Company exchanged hands as compared to its average daily volume of 698,700 shares. The stock has ranged in price between $183.60-$187.82 after having opened the day at $186.39 as compared to the previous trading day's close of $187.30.

The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paints, coatings, and related products to professional, industrial, commercial, and retail customers primarily in North America, South America, Europe, Asia, and the Caribbean region. Sherwin-Williams Company has a market cap of $19.4 billion and is part of the basic materials sector. The company has a P/E ratio of 30.5, above the S&P 500 P/E ratio of 17.7. Shares are up 21.8% year to date as of the close of trading on Monday. Currently there are 4 analysts that rate Sherwin-Williams Company a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates Sherwin-Williams Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, notable return on equity, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Sherwin-Williams Company Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, PPG Industries ( PPG) is down $1.00 (-0.6%) to $154.14 on light volume Thus far, 165,961 shares of PPG Industries exchanged hands as compared to its average daily volume of 922,100 shares. The stock has ranged in price between $154.02-$156.21 after having opened the day at $154.89 as compared to the previous trading day's close of $155.14.

PPG Industries, Inc. operates as a coatings and specialty products company. PPG Industries has a market cap of $21.9 billion and is part of the basic materials sector. The company has a P/E ratio of 19.5, above the S&P 500 P/E ratio of 17.7. Shares are up 14.6% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate PPG Industries a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates PPG Industries 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, expanding profit margins, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full PPG Industries Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, Monsanto Company ( MON) is down $0.95 (-0.9%) to $101.13 on average volume Thus far, 1.4 million shares of Monsanto Company exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $101.13-$102.63 after having opened the day at $102.32 as compared to the previous trading day's close of $102.08.

Monsanto Company, together with its subsidiaries, provides agricultural products for farmers worldwide. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. Monsanto Company has a market cap of $53.7 billion and is part of the basic materials sector. The company has a P/E ratio of 21.6, above the S&P 500 P/E ratio of 17.7. Shares are up 7.8% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Monsanto Company a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Monsanto Company 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, solid stock price performance, impressive record of earnings per share growth and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Monsanto Company Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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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