4 Stocks Pushing The Basic Materials Sector Downward

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 87 points (-0.6%) at 14,874 as of Thursday, June 6, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,317 issues advancing vs. 1,603 declining with 125 unchanged.

The Basic Materials sector currently is unchanged today versus the S&P 500, which is down 0.38. On the negative front, top decliners within the sector include Southwestern Energy Company ( SWN), down 2.55, Devon Energy ( DVN), down 2.85, Chevron ( CVX), down 1.70, Monsanto Company ( MON), down 1.18 and Praxair ( PX), down 0.72. Top gainers within the sector include Weatherford International ( WFT), up 3.0%, Kinder Morgan ( KMI), up 2.2%, Marathon Petroleum ( MPC), up 2.1%, Freeport-McMoRan Copper & Gold ( FCX), up 1.6% and Goldcorp ( GG), up 0.8%.

TheStreet Ratings group would like to highlight 4 stocks pushing the sector lower today:

4. Energy Transfer Equity ( ETE) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Energy Transfer Equity is down $0.90 (-1.6%) to $56.61 on light volume Thus far, 184,679 shares of Energy Transfer Equity exchanged hands as compared to its average daily volume of 845,900 shares. The stock has ranged in price between $56.37-$57.38 after having opened the day at $57.24 as compared to the previous trading day's close of $57.51.

Energy Transfer Equity, L.P., through its subsidiaries, provides diversified energy-related services in the United States. The company sells natural gas to electric utilities, independent power plants, local distribution companies, industrial end-users, and other marketing companies. Energy Transfer Equity has a market cap of $16.3 billion and is part of the energy industry. The company has a P/E ratio of 81.9, above the S&P 500 P/E ratio of 17.7. Shares are up 26.5% year to date as of the close of trading on Wednesday. Currently there are 7 analysts that rate Energy Transfer Equity a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Energy Transfer Equity as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Energy Transfer Equity 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, Plains All American Pipeline ( PAA) is down $0.43 (-0.8%) to $54.69 on average volume Thus far, 530,910 shares of Plains All American Pipeline exchanged hands as compared to its average daily volume of 941,800 shares. The stock has ranged in price between $54.32-$55.31 after having opened the day at $55.10 as compared to the previous trading day's close of $55.12.

Plains All American Pipeline, L.P., through its subsidiaries, engages in the transportation, storage, terminalling, and marketing of crude oil and refined products in the United States and Canada. The company operates in three segments: Transportation, Facilities, and Supply and Logistics. Plains All American Pipeline has a market cap of $18.9 billion and is part of the energy industry. The company has a P/E ratio of 17.6, below 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 Wednesday. Currently there are 13 analysts that rate Plains All American Pipeline a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Plains All American Pipeline as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Plains All American Pipeline 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, Petroleo Brasileiro SA Petrobras ( PBR) is down $0.01 (-0.1%) to $17.07 on light volume Thus far, 4.8 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 14.6 million shares. The stock has ranged in price between $16.93-$17.16 after having opened the day at $16.97 as compared to the previous trading day's close of $17.08.

Petroleo Brasileiro S.A. - Petrobras operates as an integrated oil and gas company in Brazil and internationally. Petroleo Brasileiro SA Petrobras has a market cap of $115.9 billion and is part of the energy industry. The company has a P/E ratio of 10.5, below the S&P 500 P/E ratio of 17.7. Shares are down 12.3% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Petroleo Brasileiro SA Petrobras a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Petroleo Brasileiro SA Petrobras as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full Petroleo Brasileiro SA Petrobras 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, Dow Chemical ( DOW) is down $0.18 (-0.5%) to $33.48 on light volume Thus far, 1.6 million shares of Dow Chemical exchanged hands as compared to its average daily volume of 7.8 million shares. The stock has ranged in price between $33.41-$33.77 after having opened the day at $33.63 as compared to the previous trading day's close of $33.66.

The Dow Chemical Company manufactures and supplies chemical products for use as raw materials worldwide. Dow Chemical has a market cap of $41.9 billion and is part of the chemicals industry. The company has a P/E ratio of 42.2, above the S&P 500 P/E ratio of 17.7. Shares are up 4.1% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Dow Chemical a buy, 4 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Dow Chemical as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Dow Chemical 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 3 stocks, 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).

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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