SDRL, LNG And HES, Pushing Basic Materials Sector Downward

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All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 60 points (0.4%) at 16,603 as of Friday, May 23, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,002 issues advancing vs. 938 declining with 179 unchanged.

The Basic Materials sector currently sits up 0.3% versus the S&P 500, which is up 0.3%. On the negative front, top decliners within the sector include Gerdau ( GGB), down 1.8%, Goldcorp ( GG), down 1.4%, Ecopetrol ( EC), down 1.0%, POSCO ( PKX), down 1.0% and Royal Dutch Shell ( RDS.A), down 0.6%. Top gainers within the sector include YPF Sociedad Anonima ( YPF), up 2.0%, Alcoa ( AA), up 1.7%, Tenaris ( TS), up 1.4%, Teck Resources ( TCK), up 1.4% and Southern Copper ( SCCO), up 1.4%.

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

3. Seadrill ( SDRL) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Seadrill is down $0.42 (-1.2%) to $36.28 on average volume. Thus far, 2.1 million shares of Seadrill exchanged hands as compared to its average daily volume of 4.4 million shares. The stock has ranged in price between $36.10-$36.48 after having opened the day at $36.24 as compared to the previous trading day's close of $36.70.

Seadrill Limited, an offshore drilling contractor, provides offshore drilling services to the oil and gas industry worldwide. The company operates in three segments: Floaters, Jack-up Rigs, and Tender Rigs. Seadrill has a market cap of $16.9 billion and is part of the energy industry. Shares are down 10.7% year-to-date as of the close of trading on Thursday. Currently there are 4 analysts that rate Seadrill a buy, 2 analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Seadrill as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, 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. Get the full Seadrill Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

2. As of noon trading, Cheniere Energy ( LNG) is down $0.78 (-1.3%) to $58.28 on light volume. Thus far, 798,269 shares of Cheniere Energy exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $57.85-$58.99 after having opened the day at $58.40 as compared to the previous trading day's close of $59.06.

Cheniere Energy, Inc., an energy company, is engaged in the liquefied natural gas (LNG) related business. It operates through two segments, LNG Terminal Business, and LNG and Natural Gas Marketing Business. Cheniere Energy has a market cap of $14.0 billion and is part of the energy industry. Shares are up 37.0% year-to-date as of the close of trading on Thursday. Currently there are 3 analysts that rate Cheniere Energy a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Cheniere Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk. Get the full Cheniere Energy Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

1. As of noon trading, Hess ( HES) is down $0.57 (-0.6%) to $89.72 on average volume. Thus far, 1.2 million shares of Hess exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $89.65-$90.59 after having opened the day at $90.00 as compared to the previous trading day's close of $90.29.

Hess Corporation, an exploration and production (E&P) company, develops, produces, purchases, transports, and sells crude oil and natural gas worldwide. It operates through two segments, E&P, and Retail Marketing and Other. Hess has a market cap of $28.1 billion and is part of the energy industry. Shares are up 8.8% year-to-date as of the close of trading on Thursday. Currently there are 5 analysts that rate Hess a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Hess as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Hess Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you are interested in one of these 3 stocks, 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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