Potash Corporation Of Saskatchewan Inc. (POT): Today's Featured Chemicals Laggard

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

Potash Corporation of Saskatchewan ( POT) pushed the Chemicals industry lower today making it today's featured Chemicals laggard. The industry as a whole closed the day down 0.6%. By the end of trading, Potash Corporation of Saskatchewan fell $0.43 (-1.1%) to $40.35 on light volume. Throughout the day, 2,689,139 shares of Potash Corporation of Saskatchewan exchanged hands as compared to its average daily volume of 4,103,200 shares. The stock ranged in price between $40.21-$40.91 after having opened the day at $40.60 as compared to the previous trading day's close of $40.78. Other companies within the Chemicals industry that declined today were: Ceres ( CERE), down 11.7%, American Vanguard Corporation ( AVD), down 3.9%, Pacific Ethanol ( PEIX), down 3.4% and Braskem ( BAK), down 2.9%.
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Potash Corporation of Saskatchewan Inc., together with its subsidiaries, produces and sells fertilizers and related industrial and feed products primarily in the United States and Canada. The company mines and produces potash, which is used as fertilizer. Potash Corporation of Saskatchewan has a market cap of $35.0 billion and is part of the basic materials sector. The company has a P/E ratio of 16.6, below the S&P 500 P/E ratio of 17.7. Shares are up 0.2% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Potash Corporation of Saskatchewan a buy, 2 analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Potash Corporation of Saskatchewan as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Flexible Solutions International ( FSI), down 3.9%, Senomyx ( SNMX), down 3.3%, American Pacific Corporation ( APFC), down 2.4% and Rockwood Holdings ( ROC), down 2.0% , were all gainers within the chemicals industry with Axiall ( AXLL) being today's featured chemicals industry leader.

For investors not wanting singular stock exposure, 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).

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