Chesapeake Energy Corp (CHK): Today's Featured Basic Materials Winner

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 higher today making it today's featured basic materials winner. The sector as a whole closed the day down 0.5%. By the end of trading, Chesapeake Energy rose $0.34 (1.3%) to $25.86 on light volume. Throughout the day, 5,783,771 shares of Chesapeake Energy exchanged hands as compared to its average daily volume of 9,713,800 shares. The stock ranged in a price between $25.52-$25.88 after having opened the day at $25.65 as compared to the previous trading day's close of $25.52. Other companies within the Basic Materials sector that increased today were: Houston American Energy Corporation ( HUSA), up 51.3%, Blackhawk Network Holdings ( HAWK), up 9.6%, Callon Petroleum ( CPE), up 8.3% and Penn West Petroleum ( PWE), up 7.3%.

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 $17.0 billion and is part of the energy industry. Shares are down 6.0% year to date as of the close of trading on Thursday. 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 hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins.

On the negative front, China Precision Steel ( CPSL), down 17.1%, Alpha Natural Resources ( ANR), down 12.4%, USEC ( USU), down 9.7% and Ivanhoe Energy ( IVAN), down 8.7% , were all laggards within the basic materials sector with Barrick Gold Corporation ( ABX) being today's basic materials sector laggard.

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).

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