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 3 points (0.0%) at 16,165 as of Thursday, Dec. 19, 2013, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,090 issues advancing vs. 1,843 declining with 148 unchanged.

The Basic Materials sector currently is unchanged today versus the S&P 500, which is down 0.2%. On the negative front, top decliners within the sector include China Petroleum & Chemical Corporation ( SNP), down 3.5%, Seadrill ( SDRL), down 2.3%, PetroChina ( PTR), down 2.0%, Petroleo Brasileiro SA Petrobras ( PBR.A), down 1.9% and Schlumberger ( SLB), down 1.0%. Top gainers within the sector include Nucor ( NUE), up 1.9%, Kinder Morgan ( KMI), up 1.2%, Chevron ( CVX), up 1.0%, Dow Chemical ( DOW), up 1.0% and EOG Resources ( EOG), up 1.0%.

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

5. Baker Hughes ( BHI) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Baker Hughes is down $0.76 (-1.4%) to $52.90 on light volume. Thus far, 1.1 million shares of Baker Hughes exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $52.75-$53.65 after having opened the day at $53.65 as compared to the previous trading day's close of $53.66.

Baker Hughes Incorporated supplies oilfield services, products, technology, and systems to the oil and natural gas industry worldwide. Baker Hughes has a market cap of $23.3 billion and is part of the energy industry. The company has a P/E ratio of 22.0, above the S&P 500 P/E ratio of 17.7. Shares are up 28.9% year to date as of the close of trading on Wednesday. Currently there are 17 analysts that rate Baker Hughes a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Baker Hughes as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Baker Hughes 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, LyondellBasell Industries ( LYB) is down $0.88 (-1.1%) to $77.56 on light volume. Thus far, 741,619 shares of LyondellBasell Industries exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $77.55-$78.95 after having opened the day at $78.25 as compared to the previous trading day's close of $78.44.

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 $42.9 billion and is part of the chemicals industry. The company has a P/E ratio of 13.4, below the S&P 500 P/E ratio of 17.7. Shares are up 37.4% year to date as of the close of trading on Wednesday. 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, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and growth in earnings per share. 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.

3. As of noon trading, Transocean ( RIG) is down $0.90 (-1.9%) to $47.12 on average volume. Thus far, 3.3 million shares of Transocean exchanged hands as compared to its average daily volume of 5.9 million shares. The stock has ranged in price between $46.77-$47.70 after having opened the day at $47.65 as compared to the previous trading day's close of $48.02.

Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services, as well as logistics services. Transocean has a market cap of $17.4 billion and is part of the energy industry. The company has a P/E ratio of 10.8, below the S&P 500 P/E ratio of 17.7. Shares are up 7.5% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Transocean a buy, 3 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Transocean as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, attractive valuation levels, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Transocean 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, Anadarko Petroleum ( APC) is down $0.67 (-0.8%) to $78.98 on average volume. Thus far, 2.0 million shares of Anadarko Petroleum exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $78.88-$79.59 after having opened the day at $79.57 as compared to the previous trading day's close of $79.65.

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of natural gas, crude oil, condensate, and natural gas liquids (NGLs) in the United States and internationally. Anadarko Petroleum has a market cap of $39.8 billion and is part of the energy industry. The company has a P/E ratio of 22.6, above the S&P 500 P/E ratio of 17.7. Shares are up 6.5% year to date as of the close of trading on Wednesday. Currently there are 16 analysts that rate Anadarko Petroleum a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates Anadarko Petroleum as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow. Get the full Anadarko Petroleum 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, Halliburton Company ( HAL) is down $1.00 (-2.0%) to $48.91 on average volume. Thus far, 5.3 million shares of Halliburton Company exchanged hands as compared to its average daily volume of 8.5 million shares. The stock has ranged in price between $48.71-$49.90 after having opened the day at $49.86 as compared to the previous trading day's close of $49.91.

Halliburton Company provides a range of services and products for the exploration, development, and production of oil and natural gas to oil and gas companies worldwide. The company operates in two segments, Completion and Production, and Drilling and Evaluation. Halliburton Company has a market cap of $41.9 billion and is part of the energy industry. The company has a P/E ratio of 23.6, above the S&P 500 P/E ratio of 17.7. Shares are up 43.9% year to date as of the close of trading on Wednesday. Currently there are 17 analysts that rate Halliburton Company a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Halliburton Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Halliburton 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.

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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