Suncor Energy Inc (SU): Today's Featured Basic Materials Laggard

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.

Suncor Energy ( SU) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole was unchanged today. By the end of trading, Suncor Energy fell $0.54 (-1.6%) to $33.56 on heavy volume. Throughout the day, 6,808,663 shares of Suncor Energy exchanged hands as compared to its average daily volume of 3,651,000 shares. The stock ranged in price between $33.40-$34.27 after having opened the day at $34.24 as compared to the previous trading day's close of $34.10. Other companies within the Basic Materials sector that declined today were: InterOil Corporation ( IOC), down 37.4%, Genie Energy Ltd Class B ( GNE), down 11.0%, Exeter Resource Corporation ( XRA), down 8.9% and Gastar Exploration ( GST), down 8.9%.

Suncor Energy Inc., together with its subsidiaries, operates as an integrated energy company. Suncor Energy has a market cap of $51.7 billion and is part of the energy industry. The company has a P/E ratio of 18.3, above the S&P 500 P/E ratio of 17.7. Shares are up 3.4% year to date as of the close of trading on Thursday. Currently there are 13 analysts that rate Suncor Energy a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Suncor Energy 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, reasonable valuation levels, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Metabolix ( MBLX), up 52.3%, Tonix Pharmaceuticals ( TNXP), up 30.6%, Andatee China Marine Fuel Services Corporat ( AMCF), up 26.8% and Double Eagle Petroleum Company ( DBLE), up 9.7% , were all gainers within the basic materials sector with Schlumberger ( SLB) being today's featured basic materials sector leader.

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).

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