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 closed the day up 0.2%. By the end of trading, Baker Hughes fell $0.93 (-1.4%) to $63.04 on light volume. Throughout the day, 2,895,499 shares of Baker Hughes exchanged hands as compared to its average daily volume of 4,614,700 shares. The stock ranged in price between $62.83-$64.20 after having opened the day at $63.79 as compared to the previous trading day's close of $63.97. Other companies within the Basic Materials sector that declined today were: Endeavour International ( END), down 23.5%, USEC ( USU), down 20.9%, Ceres ( CERE), down 20.3% and Yongye International ( YONG), down 10.7%.

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 $27.6 billion and is part of the energy industry. Shares are up 14.4% year to date as of the close of trading on Tuesday. Currently there are 16 analysts that rate Baker Hughes a buy, no analysts rate it a sell, and 10 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, International Tower Hill Mines ( THM), up 26.0%, New Concept Energy ( GBR), up 18.6%, Midstates Petroleum ( MPO), up 14.3% and General Steel Holdings ( GSI), up 13.2% , 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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