3 Stocks Dragging In The Basic Materials Sector

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Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 79 points (-0.5%) at 15,419 as of Friday, Aug. 9, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,348 issues advancing vs. 1,561 declining with 117 unchanged.

The Basic Materials sector currently sits up 0.1% versus the S&P 500, which is down 0.2%. On the negative front, top decliners within the sector include Potash Corporation of Saskatchewan ( POT), down 1.5%, Chevron ( CVX), down 0.7% and ConocoPhillips ( COP), down 0.7%. Top gainers within the sector include Vale ( VALE), up 5.1%, ArcelorMittal ( MT), up 5.3%, Freeport-McMoRan Copper & Gold ( FCX), up 3.2%, Petroleo Brasileiro SA Petrobras ( PBR.A), up 1.8% and Statoil ASA ( STO), up 1.1%.

TheStreet would like to highlight 3 stocks pushing the sector lower today:

3. Transocean ( RIG) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Transocean is down $0.96 (-2.0%) to $47.62 on average volume. Thus far, 1.9 million shares of Transocean exchanged hands as compared to its average daily volume of 2.7 million shares. The stock has ranged in price between $47.50-$48.50 after having opened the day at $48.50 as compared to the previous trading day's close of $48.58.

Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services, as well as logistics services. Transocean has a market cap of $17.5 billion and is part of the energy industry. Shares are up 8.6% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Transocean a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Transocean as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall. Get the full Transocean Ratings Report now.

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2. As of noon trading, Monsanto Company ( MON) is down $1.18 (-1.2%) to $96.16 on average volume. Thus far, 1.4 million shares of Monsanto Company exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $95.90-$97.88 after having opened the day at $97.09 as compared to the previous trading day's close of $97.34.

Monsanto Company, together with its subsidiaries, provides agricultural products for farmers worldwide. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. Monsanto Company has a market cap of $50.6 billion and is part of the chemicals industry. Shares are up 2.8% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Monsanto Company a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates Monsanto Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Monsanto Company Ratings Report now.

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1. As of noon trading, Exxon Mobil Corporation ( XOM) is down $0.51 (-0.6%) to $90.64 on light volume. Thus far, 4.0 million shares of Exxon Mobil Corporation exchanged hands as compared to its average daily volume of 12.8 million shares. The stock has ranged in price between $90.43-$91.36 after having opened the day at $91.19 as compared to the previous trading day's close of $91.15.

Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products. The company also transports and sells crude oil, natural gas, and petroleum products. It has approximately 37,228 gross and 31,264 net operated wells. Exxon Mobil Corporation has a market cap of $402.0 billion and is part of the energy industry. Shares are up 5.5% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate Exxon Mobil Corporation a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Exxon Mobil Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Exxon Mobil Corporation Ratings Report now.

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If you are interested in one of these 5 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).
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