Energy Transfer Equity LP (ETE): 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.

Energy Transfer Equity ( ETE) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 0.5%. By the end of trading, Energy Transfer Equity fell $0.62 (-1.5%) to $40.57 on average volume. Throughout the day, 1,801,201 shares of Energy Transfer Equity exchanged hands as compared to its average daily volume of 1,774,100 shares. The stock ranged in price between $39.79-$41.42 after having opened the day at $41.00 as compared to the previous trading day's close of $41.19. Other companies within the Basic Materials sector that declined today were: 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%.

Energy Transfer Equity, L.P., through its subsidiaries, provides diversified energy-related services in the United States. The company sells natural gas to electric utilities, independent power plants, local distribution companies, industrial end-users, and other marketing companies. Energy Transfer Equity has a market cap of $23.4 billion and is part of the energy industry. The company has a P/E ratio of 61.4, above the S&P 500 P/E ratio of 17.7. Shares are up 0.8% year to date as of the close of trading on Monday. Currently there are 7 analysts that rate Energy Transfer Equity a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Energy Transfer Equity 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, notable return on equity and solid stock price performance. 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, 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% , were all gainers within the basic materials sector with Baker Hughes ( BHI) 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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