3 Stocks Boosting The Basic Materials Sector Higher

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 24 points (-0.2%) at 15,303 as of Thursday, Sept. 12, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 960 issues advancing vs. 1,922 declining with 143 unchanged.

The Basic Materials sector currently sits down 0.8% versus the S&P 500, which is down 0.3%. A company within the sector that increased today was Suncor Energy ( SU), up 0.6%. On the negative front, top decliners within the sector include Goldcorp ( GG), down 5.7%, Silver Wheaton Corporation ( SLW), down 4.9%, Barrick Gold Corporation ( ABX), down 4.3%, Newmont Mining Corporation ( NEM), down 3.2% and Valero Energy Corporation ( VLO), down 3.2%.

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

3. Encana ( ECA) is one of the companies pushing the Basic Materials sector higher today. As of noon trading, Encana is up $0.48 (2.8%) to $17.89 on heavy volume. Thus far, 5.0 million shares of Encana exchanged hands as compared to its average daily volume of 4.2 million shares. The stock has ranged in price between $17.47-$18.22 after having opened the day at $17.57 as compared to the previous trading day's close of $17.41.

04-Nov-05 CML Had conversation with Joe Murphy ARS Calgary. Appears that both EnCana and Petro Canada are interested in our Exec Risk capabilities. EnCana D&O is $200MM limit, $2.5MM premium and renews May 1, 2006 (Management Info Circular). Encana has a market cap of $12.9 billion and is part of the energy industry. Shares are down 11.8% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Encana a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Encana as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and weak operating cash flow. Get the full Encana Ratings Report now.

3x UPSIDE POTENTIAL: 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, Cheniere Energy ( LNG) is up $0.99 (3.1%) to $32.96 on heavy volume. Thus far, 4.6 million shares of Cheniere Energy exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $31.91-$33.83 after having opened the day at $31.96 as compared to the previous trading day's close of $31.97.

Cheniere Energy, Inc., an energy company, engages in the liquefied natural gas (LNG) related business. It operates through two segments, LNG Terminal Business, and LNG and Natural Gas Marketing Business. Cheniere Energy has a market cap of $7.4 billion and is part of the energy industry. Shares are up 64.3% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Cheniere Energy a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Cheniere Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk. Get the full Cheniere Energy Ratings Report now.

3x UPSIDE POTENTIAL: 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, Seadrill ( SDRL) is up $0.48 (1.0%) to $47.38 on light volume. Thus far, 839,015 shares of Seadrill exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $46.73-$47.42 after having opened the day at $46.98 as compared to the previous trading day's close of $46.90.

Seadrill Limited provides offshore drilling services to the oil and gas industry worldwide. The company operates in three segments: Floaters, Jack-up Rigs, and Tender Rigs. Seadrill has a market cap of $22.0 billion and is part of the energy industry. Shares are up 27.3% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Seadrill a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Seadrill as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, increase in stock price during the past year, compelling growth in net income and expanding profit margins. 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 Seadrill Ratings Report now.

3x UPSIDE POTENTIAL: 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 3 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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