3 Stocks Pushing The Basic Materials Sector Downward

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.

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 40 points (0.3%) at 15,878 as of Tuesday, Jan. 28, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,973 issues advancing vs. 972 declining with 141 unchanged.

The Basic Materials sector currently sits up 0.9% versus the S&P 500, which is up 0.3%. On the negative front, top decliners within the sector include YPF Sociedad Anonima ( YPF), down 2.5%, Petroleo Brasileiro SA Petrobras ( PBR.A), down 1.4%, Halliburton Company ( HAL), down 0.9%, E.I. du Pont de Nemours & Company ( DD), down 0.9% and Marathon Petroleum ( MPC), down 0.9%. Top gainers within the sector include ArcelorMittal ( MT), up 3.9%, Chesapeake Energy ( CHK), up 2.5%, Teck Resources ( TCK), up 2.4%, EOG Resources ( EOG), up 2.3% and Canadian Natural Resources ( CNQ), up 1.9%.

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

3. Plains All American Pipeline ( PAA) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Plains All American Pipeline is down $0.53 (-1.0%) to $50.30 on average volume. Thus far, 488,323 shares of Plains All American Pipeline exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $50.13-$50.98 after having opened the day at $50.60 as compared to the previous trading day's close of $50.83.

Plains All American Pipeline, L.P., through its subsidiaries, engages in the transportation, storage, terminalling, and marketing of crude oil and refined products in the United States and Canada. The company operates in three segments: Transportation, Facilities, and Supply and Logistics. Plains All American Pipeline has a market cap of $17.8 billion and is part of the energy industry. The company has a P/E ratio of 17.7, equal to the S&P 500 P/E ratio of 17.7. Shares are down 1.8% year-to-date as of the close of trading on Monday. Currently there are 11 analysts that rate Plains All American Pipeline a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Plains All American Pipeline as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, reasonable valuation levels, notable return on equity 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. Get the full Plains All American Pipeline 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, Seadrill ( SDRL) is down $0.39 (-1.0%) to $37.36 on heavy volume. Thus far, 2.5 million shares of Seadrill exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $36.67-$37.54 after having opened the day at $36.94 as compared to the previous trading day's close of $37.75.

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 $17.7 billion and is part of the energy industry. The company has a P/E ratio of 7.9, below the S&P 500 P/E ratio of 17.7. Shares are down 8.1% year-to-date as of the close of trading on Monday. Currently there are 5 analysts that rate Seadrill a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Seadrill as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, compelling growth in net income, good cash flow from operations 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. Get the full Seadrill 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, Petroleo Brasileiro SA Petrobras ( PBR) is down $0.20 (-1.7%) to $11.60 on light volume. Thus far, 6.1 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 17.5 million shares. The stock has ranged in price between $11.60-$11.81 after having opened the day at $11.80 as compared to the previous trading day's close of $11.80.

Petroleo Brasileiro S.A. - Petrobras operates as an integrated oil and gas company in Brazil and internationally. Petroleo Brasileiro SA Petrobras has a market cap of $76.7 billion and is part of the energy industry. The company has a P/E ratio of 6.9, below the S&P 500 P/E ratio of 17.7. Shares are down 14.4% year-to-date as of the close of trading on Monday. Currently there are 3 analysts that rate Petroleo Brasileiro SA Petrobras a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Petroleo Brasileiro SA Petrobras as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow. Get the full Petroleo Brasileiro SA Petrobras 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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