Baker Hughes Inc. (BHI): Today's Featured Basic Materials Winner

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.

Baker Hughes ( BHI) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 0.5%. By the end of trading, Baker Hughes rose $0.85 (1.5%) to $57.05 on average volume. Throughout the day, 4,869,146 shares of Baker Hughes exchanged hands as compared to its average daily volume of 4,349,700 shares. The stock ranged in a price between $56.20-$57.15 after having opened the day at $56.46 as compared to the previous trading day's close of $56.20. Other companies within the Basic Materials sector that increased today were: Clayton Williams Energy ( CWEI), up 11.5%, FX Energy ( FXEN), up 8.7%, Alexco Resource ( AXU), up 8.1% and Lake Shore Gold ( LSG), up 8.0%.

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 $25.1 billion and is part of the energy industry. The company has a P/E ratio of 21.6, above the S&P 500 P/E ratio of 17.7. Shares are up 1.7% year to date as of the close of trading on Monday. Currently there are 15 analysts that rate Baker Hughes a buy, no analysts rate it a sell, and 11 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, 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.

On the negative front, James River Coal Company ( JRCC), down 28.0%, Quaterra Resources ( QMM), down 13.8%, China Gengsheng Minerals ( CHGS), down 11.4% and Timberline Resources Corporation ( TLR), down 8.3% , were all laggards within the basic materials sector with Energy Transfer Equity ( ETE) being today's basic materials sector laggard.

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).

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