5 Basic Materials Stocks Dragging The Sector Down

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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 119 points (-0.8%) at 14,828 as of Tuesday, Aug. 27, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 582 issues advancing vs. 2,376 declining with 94 unchanged.

The Basic Materials sector currently sits down 0.6% versus the S&P 500, which is down 1.0%. On the negative front, top decliners within the sector include Ultrapar Holdings ( UGP), down 3.8%, Petroleo Brasileiro SA Petrobras ( PBR), down 2.4%, Southern Copper Corporation ( SCCO), down 2.1%, Freeport-McMoRan Copper & Gold ( FCX), down 1.9% and ArcelorMittal ( MT), down 1.6%. Top gainers within the sector include Canadian Natural Resources ( CNQ), up 2.3%, Statoil ASA ( STO), up 2.1%, Imperial Oil ( IMO), up 1.6% and Royal Dutch Shell ( RDS.B), up 0.9%.

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

5. Sherwin-Williams Company ( SHW) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Sherwin-Williams Company is down $3.72 (-2.2%) to $168.13 on average volume. Thus far, 310,116 shares of Sherwin-Williams Company exchanged hands as compared to its average daily volume of 800,100 shares. The stock has ranged in price between $167.86-$169.99 after having opened the day at $169.94 as compared to the previous trading day's close of $171.85.

The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paints, coatings, and related products to professional, industrial, commercial, and retail customers primarily in North America, South America, Europe, Asia, and the Caribbean region. Sherwin-Williams Company has a market cap of $17.7 billion and is part of the chemicals industry. Shares are up 11.7% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Sherwin-Williams Company a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Sherwin-Williams Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Sherwin-Williams Company 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, Praxair ( PX) is down $1.22 (-1.0%) to $116.72 on light volume. Thus far, 436,799 shares of Praxair exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $116.52-$117.51 after having opened the day at $117.25 as compared to the previous trading day's close of $117.94.

Praxair, Inc. engages in the production, distribution, and sale atmospheric and process gases, as well as surface coatings in North America, Europe, South America, and Asia. Praxair has a market cap of $35.1 billion and is part of the chemicals industry. Shares are up 7.8% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Praxair a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Praxair as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, growth in earnings per share, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Praxair 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, Dow Chemical ( DOW) is down $0.83 (-2.1%) to $37.82 on average volume. Thus far, 3.2 million shares of Dow Chemical exchanged hands as compared to its average daily volume of 6.3 million shares. The stock has ranged in price between $37.73-$38.49 after having opened the day at $38.23 as compared to the previous trading day's close of $38.65.

The Dow Chemical Company manufactures and supplies chemical products for use as raw materials worldwide. Dow Chemical has a market cap of $46.9 billion and is part of the chemicals industry. Shares are up 19.6% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate Dow Chemical a buy, 4 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Dow Chemical as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, solid stock price performance, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Dow Chemical 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, LyondellBasell Industries ( LYB) is down $0.94 (-1.3%) to $69.18 on light volume. Thus far, 1.2 million shares of LyondellBasell Industries exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $69.05-$69.62 after having opened the day at $69.20 as compared to the previous trading day's close of $70.12.

LyondellBasell Industries N.V., together with its subsidiaries, manufacturers and sells chemicals and polymers; refines crude oil; produces gasoline blending components; and develops and licenses technologies for the production of polymers. LyondellBasell Industries has a market cap of $40.3 billion and is part of the chemicals industry. Shares are up 22.8% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate LyondellBasell Industries a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates LyondellBasell Industries as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full LyondellBasell Industries 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, Potash Corporation of Saskatchewan ( POT) is down $0.50 (-1.6%) to $30.05 on light volume. Thus far, 4.2 million shares of Potash Corporation of Saskatchewan exchanged hands as compared to its average daily volume of 11.6 million shares. The stock has ranged in price between $30.04-$30.37 after having opened the day at $30.26 as compared to the previous trading day's close of $30.55.

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 $25.9 billion and is part of the chemicals industry. Shares are down 24.9% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Potash Corporation of Saskatchewan a buy, 1 analyst rates it a sell, and 11 rate it a hold.

TheStreet Ratings rates Potash Corporation of Saskatchewan as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow. Get the full Potash Corporation of Saskatchewan 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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