Chesapeake Energy Corp (CHK): 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.

Chesapeake Energy ( CHK) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Chesapeake Energy fell $0.49 (-1.9%) to $25.45 on average volume. Throughout the day, 8,112,352 shares of Chesapeake Energy exchanged hands as compared to its average daily volume of 8,812,000 shares. The stock ranged in price between $25.41-$25.99 after having opened the day at $25.94 as compared to the previous trading day's close of $25.94. Other companies within the Basic Materials sector that declined today were: Quaterra Resources ( QMM), down 31.3%, Metabolix ( MBLX), down 7.9%, Penford Corporation ( PENX), down 5.8% and AK Steel Holding Corporation ( AKS), down 5.8%.

Chesapeake Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. The company also offers marketing, midstream, drilling, and other oilfield services. Chesapeake Energy has a market cap of $16.9 billion and is part of the energy industry. The company has a P/E ratio of 18.7, above the S&P 500 P/E ratio of 17.7. Shares are down 4.4% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Chesapeake Energy a buy, 1 analyst rates it a sell, and 19 rate it a hold.

TheStreet Ratings rates Chesapeake Energy as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, China Gengsheng Minerals ( CHGS), up 17.7%, Vista Gold Corporation ( VGZ), up 13.5%, International Tower Hill Mines ( THM), up 11.6% and Ossen Innovation ( OSN), up 10.9% , were all gainers within the basic materials sector with Southern Copper Corporation ( SCCO) 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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