3 Basic Materials Stocks Moving The Sector Upward

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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 55 points (0.3%) at 16,661 as of Tuesday, May 27, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,943 issues advancing vs. 1,024 declining with 173 unchanged.

The Basic Materials sector currently sits down 0.2% versus the S&P 500, which is up 0.5%. Top gainers within the sector include Gerdau ( GGB), up 2.3%, Seadrill ( SDRL), up 1.8% and Dow Chemical ( DOW), up 0.6%. On the negative front, top decliners within the sector include Anglogold Ashanti ( AU), down 7.5%, Agnico Eagle Mines ( AEM), down 5.6%, Franco-Nevada ( FNV), down 5.0%, Goldcorp ( GG), down 4.0% and POSCO ( PKX), down 2.9%.

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

3. Transocean ( RIG) is one of the companies pushing the Basic Materials sector higher today. As of noon trading, Transocean is up $0.70 (1.6%) to $43.24 on average volume. Thus far, 3.1 million shares of Transocean exchanged hands as compared to its average daily volume of 5.4 million shares. The stock has ranged in price between $42.85-$43.28 after having opened the day at $43.04 as compared to the previous trading day's close of $42.55.

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 $15.4 billion and is part of the energy industry. Shares are down 13.9% year-to-date as of the close of trading on Friday. Currently there are 4 analysts who 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 impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Get the full Transocean Ratings Report now.

3x UPSIDE POTENTIAL: 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, Chesapeake Energy ( CHK) is up $0.38 (1.4%) to $28.06 on light volume. Thus far, 3.3 million shares of Chesapeake Energy exchanged hands as compared to its average daily volume of 9.3 million shares. The stock has ranged in price between $27.70-$28.13 after having opened the day at $27.81 as compared to the previous trading day's close of $27.68.

Chesapeake Energy Corporation is engaged in the acquisition, exploration, and development of properties for the production of natural gas, oil, and natural gas liquids (NGL) from underground reservoirs in the United States. Chesapeake Energy has a market cap of $18.4 billion and is part of the energy industry. Shares are up 2.0% year-to-date as of the close of trading on Friday. Currently there are 5 analysts who rate Chesapeake Energy a buy, 1 analyst rates it a sell, and 16 rate it a hold.

TheStreet Ratings rates Chesapeake Energy as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Chesapeake Energy Ratings Report now.

3x UPSIDE POTENTIAL: 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, Schlumberger ( SLB) is up $0.76 (0.8%) to $102.15 on light volume. Thus far, 2.0 million shares of Schlumberger exchanged hands as compared to its average daily volume of 5.8 million shares. The stock has ranged in price between $101.50-$102.34 after having opened the day at $101.84 as compared to the previous trading day's close of $101.39.

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to oil and gas exploration and production industries worldwide. It operates through three groups: Reservoir Characterization, Drilling, and Production. Schlumberger has a market cap of $132.0 billion and is part of the energy industry. Shares are up 12.5% year-to-date as of the close of trading on Friday. Currently there are 23 analysts who rate Schlumberger a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Schlumberger 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, solid stock price performance, impressive record of earnings per share growth and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Schlumberger Ratings Report now.

3x UPSIDE POTENTIAL: 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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