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 down 1.6%. By the end of trading, Chesapeake Energy fell $0.87 (-3.2%) to $26.01 on average volume. Throughout the day, 9,756,865 shares of Chesapeake Energy exchanged hands as compared to its average daily volume of 8,716,600 shares. The stock ranged in price between $25.75-$26.84 after having opened the day at $26.84 as compared to the previous trading day's close of $26.88. Other companies within the Basic Materials sector that declined today were: Quaterra Resources ( QMM), down 14.8%, Golden Star Resources ( GSS), down 14.8%, Minco Gold Corporation ( MGH), down 14.7% and Golden Minerals ( AUMN), down 14.6%.

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 $17.9 billion and is part of the energy industry. The company has a P/E ratio of 19.8, above the S&P 500 P/E ratio of 17.7. Shares are down 1.0% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate Chesapeake Energy a buy, 1 analyst rates it a sell, and 18 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, Augusta Resource Corporation ( AZC), up 7.6%, China Gerui Advanced Materials Group ( CHOP), up 6.0%, General Steel Holdings ( GSI), up 5.0% and Petrobras Argentina ( PZE), up 4.9% , were all gainers within the basic materials sector with YPF Sociedad Anonima ( YPF) 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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