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.

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