3 Stocks Pulling The Basic Materials Sector Downward

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%. 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%. Top gainers within the sector include Gerdau ( GGB), up 2.3%, Seadrill ( SDRL), up 1.8% and Dow Chemical ( DOW), up 0.6%.

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

3. Petroleo Brasileiro SA Petrobras ( PBR.A) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Petroleo Brasileiro SA Petrobras is down $0.33 (-2.1%) to $15.63 on light volume. Thus far, 3.2 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 11.2 million shares. The stock has ranged in price between $15.62-$16.17 after having opened the day at $16.10 as compared to the previous trading day's close of $15.96.

Petroleo Brasileiro S.A. - Petrobras operates as an integrated oil and gas company in Brazil and internationally. Petroleo Brasileiro SA Petrobras has a market cap of $104.1 billion and is part of the energy industry. Shares are up 8.7% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Petroleo Brasileiro SA Petrobras as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow. Get the full Petroleo Brasileiro SA Petrobras 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, Newmont Mining ( NEM) is down $0.75 (-3.2%) to $22.65 on average volume. Thus far, 3.9 million shares of Newmont Mining exchanged hands as compared to its average daily volume of 8.0 million shares. The stock has ranged in price between $22.61-$23.22 after having opened the day at $23.22 as compared to the previous trading day's close of $23.40.

Newmont Mining Corporation, together with its subsidiaries, acquires, explores for, and produces gold, copper, and silver deposits. The company's assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, New Zealand, Mexico, and Suriname. Newmont Mining has a market cap of $11.7 billion and is part of the metals & mining industry. Shares are up 1.6% year-to-date as of the close of trading on Friday. Currently there are 2 analysts that rate Newmont Mining a buy, 4 analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Newmont Mining as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Get the full Newmont Mining 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, BP ( BP) is down $0.38 (-0.7%) to $50.72 on light volume. Thus far, 1.7 million shares of BP exchanged hands as compared to its average daily volume of 5.1 million shares. The stock has ranged in price between $50.71-$51.04 after having opened the day at $50.98 as compared to the previous trading day's close of $51.10.

BP p.l.c. provides fuel for transportation, energy for heat and light, lubricants to engines, and petrochemicals products worldwide. BP has a market cap of $174.0 billion and is part of the energy industry. Shares are up 5.1% year-to-date as of the close of trading on Friday. Currently there are 6 analysts that rate BP a buy, 1 analyst rates it a sell, and 5 rate it a hold.

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