3 Stocks Pushing 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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 28 points (-0.2%) at 16,647 as of Wednesday, May 28, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,518 issues advancing vs. 1,472 declining with 153 unchanged.

The Basic Materials sector currently sits down 0.3% versus the S&P 500, which is unchanged. On the negative front, top decliners within the sector include Transocean ( RIG), down 2.1%, Barrick Gold ( ABX), down 1.8%, Total ( TOT), down 1.0%, Imperial Oil ( IMO), down 0.9% and Halliburton ( HAL), down 0.8%. Top gainers within the sector include Westlake Chemical ( WLK), up 2.7%, Valero Energy ( VLO), up 1.3%, Occidental Petroleum ( OXY), up 1.5%, China Petroleum & Chemical ( SNP), up 1.3% and ConocoPhillips ( COP), up 1.1%.

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

3. Southern Copper ( SCCO) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Southern Copper is down $0.40 (-1.3%) to $29.54 on light volume. Thus far, 585,137 shares of Southern Copper exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $29.25-$29.82 after having opened the day at $29.82 as compared to the previous trading day's close of $29.94.

Southern Copper Corporation is engaged in the mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Chile, and Ecuador. Southern Copper has a market cap of $25.4 billion and is part of the metals & mining industry. Shares are up 4.3% year-to-date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Southern Copper a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Southern Copper as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow. Get the full Southern Copper 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, Goldcorp ( GG) is down $0.52 (-2.2%) to $23.04 on average volume. Thus far, 3.2 million shares of Goldcorp exchanged hands as compared to its average daily volume of 5.1 million shares. The stock has ranged in price between $22.91-$23.52 after having opened the day at $23.47 as compared to the previous trading day's close of $23.56.

Goldcorp Inc. is engaged in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. Goldcorp has a market cap of $19.9 billion and is part of the metals & mining industry. Shares are up 8.7% year-to-date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Goldcorp a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates Goldcorp as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself. Get the full Goldcorp 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, Vale ( VALE) is down $0.12 (-0.9%) to $12.95 on average volume. Thus far, 9.4 million shares of Vale exchanged hands as compared to its average daily volume of 20.5 million shares. The stock has ranged in price between $12.85-$13.06 after having opened the day at $12.99 as compared to the previous trading day's close of $13.07.

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 $67.9 billion and is part of the metals & mining industry. Shares are down 14.3% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Vale a buy, 2 analysts rate it a sell, and 7 rate it a hold.

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