Chesapeake Energy Corp (CHK): 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.

Chesapeake Energy ( CHK) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day down 0.3%. By the end of trading, Chesapeake Energy fell $1.33 (-4.9%) to $25.61 on heavy volume. Throughout the day, 27,009,249 shares of Chesapeake Energy exchanged hands as compared to its average daily volume of 9,257,100 shares. The stock ranged in price between $24.75-$26.10 after having opened the day at $26.10 as compared to the previous trading day's close of $26.94. Other companies within the Basic Materials sector that declined today were: Forest Oil ( FST), down 37.8%, China Gengsheng Minerals ( CHGS), down 10.7%, Atlatsa Resources ( ATL), down 10.2% and QEP Resources ( QEP), down 10.0%.

Chesapeake Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. The company also offers marketing, midstream, drilling, and other oilfield services. Chesapeake Energy has a market cap of $18.2 billion and is part of the energy industry. Shares are down 0.7% year to date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Chesapeake Energy a buy, 1 analyst rates it a sell, and 19 rate it a hold.

TheStreet Ratings rates Chesapeake Energy as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, reasonable valuation levels, good cash flow from operations and compelling growth in net income. 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, Amyris ( AMRS), up 26.4%, Synthesis Energy Sys ( SYMX), up 12.6%, Walter Energy ( WLT), up 9.9% and Sociedad Quimica Y Minera De Chile ( SQM), up 7.9% , were all gainers within the basic materials sector with Alcoa ( AA) 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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