Superior Energy Services Inc (SPN): 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

Superior Energy Services ( SPN) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 0.8%. By the end of trading, Superior Energy Services rose $0.34 (1.3%) to $27.23 on average volume. Throughout the day, 2,297,588 shares of Superior Energy Services exchanged hands as compared to its average daily volume of 2,036,600 shares. The stock ranged in a price between $26.82-$27.53 after having opened the day at $26.82 as compared to the previous trading day's close of $26.89. Other companies within the Basic Materials sector that increased today were: Houston American Energy Corporation ( HUSA), up 17.2%, Synergy Resources Corporation ( SYRG), up 10.8%, Polymet Mining ( PLM), up 9.7% and Recovery Energy ( RECV), up 8.7%.
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Superior Energy Services, Inc. provides specialized oilfield services and equipment to oil and gas companies. The company operates in four segments: Drilling Products and Services; Onshore Completion and Workover Services; Production Services; and Subsea and Technical Solutions. Superior Energy Services has a market cap of $4.2 billion and is part of the energy industry. The company has a P/E ratio of 11.0, below the S&P 500 P/E ratio of 17.7. Shares are up 29.8% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Superior Energy Services a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Superior Energy Services as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, attractive valuation levels and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Walter Energy ( WLT), down 17.4%, Great Basin Gold ( GBG), down 16.0%, Ceres ( CERE), down 11.7% and Midway Gold ( MDW), down 9.9% , were all laggards within the basic materials sector with ConocoPhillips ( COP) 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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