5 Stocks Pulling 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 lower today with the Dow Jones Industrial Average ( ^DJI) trading down 56 points (-0.3%) at 15,939 as of Wednesday, Feb. 12, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,598 issues advancing vs. 1,323 declining with 154 unchanged.

The Basic Materials sector currently sits up 0.3% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the sector include Seadrill ( SDRL), down 3.7%, Williams Companies ( WMB), down 2.2%, Newmont Mining Corporation ( NEM), down 2.0%, Gerdau ( GGB), down 1.9% and Goldcorp ( GG), down 1.6%. Top gainers within the sector include Valspar Corporation ( VAL), up 6.3%, Continental Resources ( CLR), up 2.6%, Canadian Natural Resources ( CNQ), up 2.2%, Imperial Oil ( IMO), up 2.0% and Enbridge ( ENB), up 2.0%.

TheStreet would like to highlight 5 stocks pushing the sector lower today:

5. Southern Copper Corporation ( SCCO) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Southern Copper Corporation is down $0.21 (-0.7%) to $31.61 on average volume. Thus far, 1.2 million shares of Southern Copper Corporation exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $31.52-$32.47 after having opened the day at $32.00 as compared to the previous trading day's close of $31.82.

Southern Copper Corporation engages in mining, exploring, producing, smelting, and refining copper and other minerals in Peru, Mexico, and Chile. Southern Copper Corporation has a market cap of $25.6 billion and is part of the metals & mining industry. Shares are up 10.8% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Southern Copper Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Southern Copper Corporation as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, notable return on equity, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Southern Copper Corporation 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.

4. As of noon trading, Kinder Morgan Energy Partners ( KMP) is down $0.81 (-1.0%) to $79.88 on light volume. Thus far, 359,577 shares of Kinder Morgan Energy Partners exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $79.84-$80.69 after having opened the day at $80.56 as compared to the previous trading day's close of $80.69.

Kinder Morgan Energy Partners, L.P. operates as a pipeline transportation and energy storage company in North America. Kinder Morgan Energy Partners has a market cap of $24.8 billion and is part of the energy industry. Shares are up 0.0% year-to-date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Kinder Morgan Energy Partners a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Kinder Morgan Energy Partners as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Kinder Morgan Energy Partners 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.

3. As of noon trading, Petroleo Brasileiro SA Petrobras ( PBR.A) is down $0.08 (-0.7%) to $12.42 on average volume. Thus far, 4.8 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 7.8 million shares. The stock has ranged in price between $12.38-$12.58 after having opened the day at $12.49 as compared to the previous trading day's close of $12.50.

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 $79.3 billion and is part of the energy industry. Shares are down 14.9% year-to-date as of the close of trading on Tuesday.

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.

2. As of noon trading, Spectra Energy ( SE) is down $0.33 (-0.9%) to $37.06 on average volume. Thus far, 1.3 million shares of Spectra Energy exchanged hands as compared to its average daily volume of 3.1 million shares. The stock has ranged in price between $36.99-$37.39 after having opened the day at $37.30 as compared to the previous trading day's close of $37.40.

Spectra Energy Corp, through its subsidiaries, owns and operates a portfolio of natural gas-related energy assets in North America. The company's U.S. Spectra Energy has a market cap of $24.8 billion and is part of the energy industry. Shares are up 5.9% year-to-date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Spectra Energy a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Spectra Energy as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, solid stock price performance and growth in earnings per share. 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 Spectra Energy 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, Freeport-McMoRan Copper & Gold ( FCX) is down $0.27 (-0.8%) to $32.92 on average volume. Thus far, 4.4 million shares of Freeport-McMoRan Copper & Gold exchanged hands as compared to its average daily volume of 10.7 million shares. The stock has ranged in price between $32.89-$33.64 after having opened the day at $33.32 as compared to the previous trading day's close of $33.19.

Freeport-McMoRan Copper & Gold Inc. engages in the exploration of mineral resource properties. The company primarily explores for copper, gold, molybdenum, cobalt, silver, and other metals, such as rhenium and magnetite. Freeport-McMoRan Copper & Gold has a market cap of $33.5 billion and is part of the metals & mining industry. Shares are down 12.1% year-to-date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Freeport-McMoRan Copper & Gold a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Freeport-McMoRan Copper & Gold as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself. Get the full Freeport-McMoRan Copper & Gold 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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