Baker Hughes Inc. (BHI): 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.

Baker Hughes ( BHI) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole was unchanged today. By the end of trading, Baker Hughes fell $0.80 (-1.3%) to $59.69 on heavy volume. Throughout the day, 6,888,372 shares of Baker Hughes exchanged hands as compared to its average daily volume of 4,485,800 shares. The stock ranged in price between $59.58-$61.73 after having opened the day at $60.60 as compared to the previous trading day's close of $60.49. Other companies within the Basic Materials sector that declined today were: Prospect Global Resources ( PGRX), down 31.2%, North American Palladium ( PAL), down 11.8%, Minco Gold Corporation ( MGH), down 11.7% and Midcoast Energy Partners ( MEP), down 9.4%.

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 $26.2 billion and is part of the energy industry. Shares are up 9.5% year to date as of the close of trading on Tuesday. 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 positive front, Senomyx ( SNMX), up 24.9%, China Gengsheng Minerals ( CHGS), up 18.2%, Recon Technology ( RCON), up 12.9% and AMCOL International Corporation ( ACO), up 12.3% , were all gainers within the basic materials sector with Continental Resources ( CLR) 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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