Chevron Corp (CVX): 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.

Chevron ( CVX) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 0.4%. By the end of trading, Chevron rose $3.00 (2.5%) to $121.81 on average volume. Throughout the day, 7,573,324 shares of Chevron exchanged hands as compared to its average daily volume of 5,324,600 shares. The stock ranged in a price between $119.46-$122.36 after having opened the day at $119.63 as compared to the previous trading day's close of $118.81. Other companies within the Basic Materials sector that increased today were: Quaterra Resources ( QMM), up 20.7%, BioFuel Energy Corporation ( BIOF), up 17.3%, Ceres ( CERE), up 11.1% and Synthesis Energy Sys ( SYMX), up 10.7%.

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 $229.6 billion and is part of the energy industry. Shares are up 9.9% year to date as of the close of trading on Tuesday. 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.

On the negative front, China Gerui Advanced Materials Group ( CHOP), down 15.1%, Minco Gold Corporation ( MGH), down 10.3%, Ivanhoe Energy ( IVAN), down 9.6% and Cardero Resources Corporation ( CDY), down 8.5% , were all laggards within the basic materials sector with Agrium ( AGU) 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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