Encana Corp (ECA): 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.

Encana ( ECA) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 1.2%. By the end of trading, Encana fell $0.55 (-2.9%) to $18.39 on average volume. Throughout the day, 5,369,655 shares of Encana exchanged hands as compared to its average daily volume of 5,028,200 shares. The stock ranged in price between $18.34-$18.97 after having opened the day at $18.96 as compared to the previous trading day's close of $18.94. Other companies within the Basic Materials sector that declined today were: Uranium Resources ( URRE), down 16.0%, Aceto Corporation ( ACET), down 11.8%, Endeavour International ( END), down 9.0% and Energy XXI ( EXXI), down 7.2%.

Encana Corporation and its subsidiaries engage in the exploration for, development, production, and marketing of natural gas, oil, and natural gas liquids in Canada and the United States. Encana has a market cap of $13.9 billion and is part of the energy industry. Shares are up 4.9% year to date as of the close of trading on Thursday. Currently there are 6 analysts that rate Encana a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Encana as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and weak operating cash flow.

On the positive front, Augusta Resource Corporation ( AZC), up 16.9%, Magellan Petroleum Corporation ( MPET), up 13.9%, Ivanhoe Energy ( IVAN), up 11.9% and Tanzanian Royalty Exploration Corporation ( TRX), up 10.7% , were all gainers within the basic materials sector with ConocoPhillips ( COP) 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.

If you liked this article you might like

These 10 Stocks Are Helping Drive the Market Rally Monday

These 10 Stocks Are Helping Drive the Market Rally Monday

Charts Are Positive for Encana

Charts Are Positive for Encana

Finding Bullish and Bearish Market Reversals

Finding Bullish and Bearish Market Reversals

Parsley Energy Picks Up Permian Assets From Apache, Others: Source

Parsley Energy Picks Up Permian Assets From Apache, Others: Source

'Mad Money' Lightning Round: Vodafone, Encana, Arconic, AdvanSix

'Mad Money' Lightning Round: Vodafone, Encana, Arconic, AdvanSix