Linn Energy LLC (LINE): Today's Featured Basic Materials Winner

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Linn Energy ( LINE) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 0.3%. By the end of trading, Linn Energy rose $2.48 (9.9%) to $27.49 on average volume. Throughout the day, 6,511,999 shares of Linn Energy exchanged hands as compared to its average daily volume of 4,427,900 shares. The stock ranged in a price between $26.02-$27.52 after having opened the day at $26.40 as compared to the previous trading day's close of $25.01. Other companies within the Basic Materials sector that increased today were: Kimber Resources ( KBX), up 24.1%, USEC ( USU), up 18.8%, Energy XXI ( EXXI), up 14.5% and Camac Energy ( CAK), up 11.7%.

Linn Energy, LLC, an independent oil and natural gas company, engages in the acquisition and development of oil and natural gas properties. Linn Energy has a market cap of $5.9 billion and is part of the energy industry. Shares are down 28.5% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Linn Energy a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Linn Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

On the negative front, SMF Energy Corporation ( FUEL), down 21.1%, Golden Star Resources ( GSS), down 10.0%, Minco Gold Corporation ( MGH), down 9.1% and Quaterra Resources ( QMM), down 9.1% , 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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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