3 Stocks Pushing The Basic Materials Sector Lower

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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 11 points (0.1%) at 16,218 as of Tuesday, Feb. 25, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,600 issues advancing vs. 1,298 declining with 186 unchanged.

The Basic Materials sector currently sits down 0.4% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the sector include Halliburton Company ( HAL), down 2.1%, Baker Hughes ( BHI), down 1.8%, Tenaris ( TS), down 1.6%, Apache Corporation ( APA), down 1.6% and Hess ( HES), down 1.2%. Top gainers within the sector include Marathon Petroleum ( MPC), up 2.7%, Phillips 66 ( PSX), up 2.1%, Kinder Morgan Energy Partners ( KMP), up 1.7%, EOG Resources ( EOG), up 1.7% and Kinder Morgan ( KMI), up 1.6%.

TheStreet would like to highlight 3 stocks pushing the sector lower today:

3. Royal Dutch Shell ( RDS.B) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Royal Dutch Shell is down $0.42 (-0.5%) to $78.80 on average volume. Thus far, 577,450 shares of Royal Dutch Shell exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $78.24-$79.03 after having opened the day at $78.76 as compared to the previous trading day's close of $79.22.

Royal Dutch Shell plc operates as an independent oil and gas company worldwide. The company explores for and extracts crude oil, natural gas, and natural gas liquids. Royal Dutch Shell has a market cap of $249.1 billion and is part of the energy industry. Shares are up 5.5% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Royal Dutch Shell as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Royal Dutch Shell 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, Seadrill ( SDRL) is down $2.18 (-5.8%) to $35.50 on heavy volume. Thus far, 6.8 million shares of Seadrill exchanged hands as compared to its average daily volume of 3.9 million shares. The stock has ranged in price between $35.04-$36.12 after having opened the day at $36.01 as compared to the previous trading day's close of $37.68.

Seadrill Limited provides offshore drilling services to the oil and gas industry worldwide. The company operates in three segments: Floaters, Jack-up Rigs, and Tender Rigs. Seadrill has a market cap of $17.3 billion and is part of the energy industry. Shares are down 8.3% year-to-date as of the close of trading on Monday. Currently there are 5 analysts that rate Seadrill a buy, 2 analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Seadrill as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, compelling growth in net income, good cash flow from operations and impressive record of earnings per share growth. 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 Seadrill 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, Transocean ( RIG) is down $1.26 (-2.9%) to $42.66 on heavy volume. Thus far, 4.4 million shares of Transocean exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $42.24-$43.72 after having opened the day at $43.69 as compared to the previous trading day's close of $43.92.

Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services, as well as logistics services. Transocean has a market cap of $15.6 billion and is part of the energy industry. Shares are down 11.1% year-to-date as of the close of trading on Monday. Currently there are 5 analysts that rate Transocean a buy, 4 analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Transocean as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself. Get the full Transocean 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 3 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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