Cimarex Energy Company (XEC): 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

Cimarex Energy Company ( XEC) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 0.7%. By the end of trading, Cimarex Energy Company rose $0.75 (1.1%) to $70.87 on light volume. Throughout the day, 623,493 shares of Cimarex Energy Company exchanged hands as compared to its average daily volume of 898,800 shares. The stock ranged in a price between $69.69-$71.06 after having opened the day at $69.93 as compared to the previous trading day's close of $70.12. Other companies within the Basic Materials sector that increased today were: Torch Energy Royalty ( TRU), up 14.8%, Allied Nevada Gold ( ANV), up 8.6%, Endeavour International ( END), up 8.1% and Magnum Hunter Resources Corportion ( MHR), up 7.8%.
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Cimarex Energy Co. operates as an independent oil and gas exploration and production company primarily in Oklahoma, Texas, New Mexico, and Kansas. As of December 31, 2012, the company owned an interest in 4,953 net productive oil and gas wells. Cimarex Energy Company has a market cap of $6.1 billion and is part of the energy industry. The company has a P/E ratio of 17.1, below the S&P 500 P/E ratio of 17.7. Shares are up 21.5% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Cimarex Energy Company a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Cimarex Energy Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Prospect Global Resources ( PGRX), down 11.1%, Golden Star Resources ( GSS), down 10.7%, Minco Gold Corporation ( MGH), down 10.3% and Constellation Energy Partners ( CEP), down 8.0% , were all laggards within the basic materials sector with Phillips 66 ( PSX) 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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