5 Stocks Pushing The Basic Materials Sector Downward

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 23 points (-0.1%) at 15,403 as of Monday, Aug. 12, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,506 issues advancing vs. 1,423 declining with 115 unchanged.

The Basic Materials sector currently sits up 1.0% versus the S&P 500, which is down 0.2%. On the negative front, top decliners within the sector include Air Products & Chemicals ( APD), down 2.6%, Cenovus Energy ( CVE), down 2.5%, Canadian Natural Resources ( CNQ), down 1.4%, Statoil ASA ( STO), down 1.3% and Exxon Mobil Corporation ( XOM), down 1.0%. Top gainers within the sector include Eldorado Gold ( EGO), up 8.5%, Kinross Gold Corporation ( KGC), up 7.6%, Barrick Gold Corporation ( ABX), up 5.4%, Pembina Pipeline ( PBA), up 4.0% and Teck Resources ( TCK), up 3.1%.

TheStreet would like to highlight 5 stocks pushing the sector lower today:

5. Royal Dutch Shell ( RDS.A) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Royal Dutch Shell is down $0.44 (-0.7%) to $64.33 on average volume. Thus far, 1.2 million shares of Royal Dutch Shell exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $64.01-$64.38 after having opened the day at $64.02 as compared to the previous trading day's close of $64.77.

Royal Dutch Shell plc operates as an independent oil and gas company worldwide. The company explores for and extracts crude oil, natural gas, and natural gas liquids. Royal Dutch Shell has a market cap of $203.2 billion and is part of the energy industry. Shares are down 6.1% year to date as of the close of trading on Friday.

TheStreet Ratings rates Royal Dutch Shell as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Royal Dutch Shell Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

4. As of noon trading, Phillips 66 ( PSX) is down $0.99 (-1.7%) to $57.93 on light volume. Thus far, 1.5 million shares of Phillips 66 exchanged hands as compared to its average daily volume of 4.0 million shares. The stock has ranged in price between $57.90-$58.98 after having opened the day at $58.44 as compared to the previous trading day's close of $58.92.

Phillips 66 operates as an independent downstream energy company. The company operates in three segments: Refining and Marketing (R&M), Midstream, and Chemicals. Phillips 66 has a market cap of $36.6 billion and is part of the energy industry. Shares are up 11.0% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Phillips 66 a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Phillips 66 as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow. Get the full Phillips 66 Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

3. As of noon trading, Petroleo Brasileiro SA Petrobras ( PBR) is down $0.11 (-0.8%) to $14.17 on heavy volume. Thus far, 13.9 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 17.6 million shares. The stock has ranged in price between $14.11-$14.75 after having opened the day at $14.47 as compared to the previous trading day's close of $14.28.

Petroleo Brasileiro S.A. - Petrobras operates as an integrated oil and gas company in Brazil and internationally. Petroleo Brasileiro SA Petrobras has a market cap of $90.9 billion and is part of the energy industry. Shares are down 26.7% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Petroleo Brasileiro SA Petrobras a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Petroleo Brasileiro SA Petrobras as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow. Get the full Petroleo Brasileiro SA Petrobras Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, ConocoPhillips ( COP) is down $0.65 (-1.0%) to $66.18 on light volume. Thus far, 1.9 million shares of ConocoPhillips exchanged hands as compared to its average daily volume of 6.2 million shares. The stock has ranged in price between $66.06-$66.52 after having opened the day at $66.32 as compared to the previous trading day's close of $66.83.

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids on a worldwide basis. ConocoPhillips has a market cap of $82.0 billion and is part of the energy industry. Shares are up 15.2% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate ConocoPhillips a buy, 4 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates ConocoPhillips as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, attractive valuation levels, expanding profit margins, good cash flow from operations and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full ConocoPhillips Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, Chevron ( CVX) is down $1.52 (-1.2%) to $120.98 on average volume. Thus far, 2.4 million shares of Chevron exchanged hands as compared to its average daily volume of 5.9 million shares. The stock has ranged in price between $120.91-$122.07 after having opened the day at $122.00 as compared to the previous trading day's close of $122.50.

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. The company operates in two segments, Upstream and Downstream. Chevron has a market cap of $238.6 billion and is part of the energy industry. Shares are up 13.3% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Chevron a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Chevron as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Get the full Chevron Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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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