Transocean Ltd (RIG): 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.

Transocean ( RIG) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 1.0%. By the end of trading, Transocean fell $1.14 (-2.7%) to $40.89 on average volume. Throughout the day, 6,490,585 shares of Transocean exchanged hands as compared to its average daily volume of 5,511,700 shares. The stock ranged in price between $40.71-$42.52 after having opened the day at $42.52 as compared to the previous trading day's close of $42.03. Other companies within the Basic Materials sector that declined today were: James River Coal Company ( JRCC), down 12.9%, North American Palladium ( PAL), down 12.3%, Alpha Natural Resources ( ANR), down 6.3% and Walter Energy ( WLT), down 6.2%.

Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. The company provides deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. Transocean has a market cap of $14.9 billion and is part of the energy industry. Shares are down 14.9% year to date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Transocean a buy, 4 analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Transocean as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels 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, poor profit margins and weak operating cash flow.

On the positive front, Uranium Energy Corporation ( UEC), up 16.5%, Athlon Energy ( ATHL), up 13.1%, New Concept Energy ( GBR), up 12.4% and Dejour Energy ( DEJ), up 11.0% , were all gainers within the basic materials sector with Occidental Petroleum Corporation ( OXY) 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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