3 Basic Materials Stocks Dragging The Sector Down

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All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 105 points (0.6%) at 16,554 as of Tuesday, April 22, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,226 issues advancing vs. 749 declining with 155 unchanged.

The Basic Materials sector currently sits up 0.4% versus the S&P 500, which is up 0.6%. On the negative front, top decliners within the sector include Continental Resources ( CLR), down 1.1%, Statoil ASA ( STO), down 1.1% and Ecopetrol S.A ( EC), down 0.8%. Top gainers within the sector include Celanese Corporation ( CE), up 4.2%, China Petroleum & Chemical Corporation ( SNP), up 3.3%, Magellan Midstream Partners L.P ( MMP), up 2.3%, Sherwin-Williams Company ( SHW), up 2.1% and Freeport-McMoRan Copper & Gold ( FCX), up 1.1%.

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

3. Vale ( VALE) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Vale is down $0.10 (-0.7%) to $13.70 on average volume. Thus far, 11.5 million shares of Vale exchanged hands as compared to its average daily volume of 22.6 million shares. The stock has ranged in price between $13.67-$13.86 after having opened the day at $13.78 as compared to the previous trading day's close of $13.80.

Vale S.A. is engaged in the research, production, and sale of iron ore and pellets, nickel, fertilizer, copper, coal, manganese, ferroalloys, cobalt, platinum group metals, and precious metals. Vale has a market cap of $75.7 billion and is part of the metals & mining industry. Shares are down 9.5% year-to-date as of the close of trading on Monday. Currently there are 6 analysts that rate Vale a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Vale as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. Get the full Vale Ratings Report now.

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