Anadarko Petroleum Corp (APC): 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

Anadarko Petroleum ( APC) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 1.2%. By the end of trading, Anadarko Petroleum rose $2.11 (2.5%) to $85.08 on average volume. Throughout the day, 4,281,007 shares of Anadarko Petroleum exchanged hands as compared to its average daily volume of 3,176,100 shares. The stock ranged in a price between $83.78-$85.41 after having opened the day at $83.99 as compared to the previous trading day's close of $82.97. Other companies within the Basic Materials sector that increased today were: BMB Munai ( BMBM), up 29.3%, Oxford Resource Partners ( OXF), up 26.2%, Golden Star Resources ( GSS), up 16.6% and Prospect Global Resources ( PGRX), up 14.4%.
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Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of natural gas, crude oil, condensate, and natural gas liquids (NGLs) in the United States and internationally. Anadarko Petroleum has a market cap of $41.8 billion and is part of the energy industry. The company has a P/E ratio of 60.9, above the S&P 500 P/E ratio of 17.7. Shares are up 11.7% year to date as of the close of trading on Monday. Currently there are 20 analysts that rate Anadarko Petroleum a buy, no analysts rate it a sell, and 3 rate it a hold.

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

On the negative front, GeoPetro Resources Company ( GPR), down 18.8%, Cardero Resources Corporation ( CDY), down 16.7%, American Vanguard Corporation ( AVD), down 16.4% and Methes Energies International ( MEIL), down 15.4% , were all laggards within the basic materials sector with Kinross Gold Corporation ( KGC) 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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