POT, RIG And PBR, 3 Basic Materials Stocks Pushing The Sector Lower

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.

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 16 points (0.1%) at 16,733 as of Monday, June 2, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,394 issues advancing vs. 1,564 declining with 187 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 Oil States International ( OIS), down 43.0%, National Oilwell Varco ( NOV), down 9.6%, Petroleo Brasileiro SA Petrobras ( PBR.A), down 2.8%, EQT ( EQT), down 1.8% and ConocoPhillips ( COP), down 0.6%. Top gainers within the sector include Air Products & Chemicals ( APD), up 1.6%, Energy Transfer Equity ( ETE), up 1.4%, China Petroleum & Chemical ( SNP), up 1.4%, Praxair ( PX), up 1.4% and Spectra Energy ( SE), up 1.3%.

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

3. Potash Corp of Saskatchewan ( POT) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Potash Corp of Saskatchewan is down $0.43 (-1.2%) to $35.89 on average volume. Thus far, 2.0 million shares of Potash Corp of Saskatchewan exchanged hands as compared to its average daily volume of 4.8 million shares. The stock has ranged in price between $35.81-$36.42 after having opened the day at $36.18 as compared to the previous trading day's close of $36.32.

Potash Corporation of Saskatchewan Inc., together with its subsidiaries, produces and sells fertilizers and related industrial and feed products worldwide. It mines and produces potash, which is primarily used as fertilizer. Potash Corp of Saskatchewan has a market cap of $30.8 billion and is part of the chemicals industry. Shares are up 10.2% year-to-date as of the close of trading on Friday. Currently there are 5 analysts that rate Potash Corp of Saskatchewan a buy, 1 analyst rates it a sell, and 12 rate it a hold.

TheStreet Ratings rates Potash Corp of Saskatchewan as a buy. The company's strengths can be seen in multiple areas, such as its 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 somewhat weak growth in earnings per share. Get the full Potash Corp of Saskatchewan 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, Transocean ( RIG) is down $0.86 (-2.0%) to $41.63 on average volume. Thus far, 3.1 million shares of Transocean exchanged hands as compared to its average daily volume of 5.2 million shares. The stock has ranged in price between $41.60-$42.36 after having opened the day at $42.26 as compared to the previous trading day's close of $42.49.

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 $15.3 billion and is part of the energy industry. Shares are down 14.0% year-to-date as of the close of trading on Friday. Currently there are 4 analysts that 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, revenue growth and attractive valuation levels. 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.

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, Petroleo Brasileiro SA Petrobras ( PBR) is down $0.39 (-2.8%) to $13.71 on average volume. Thus far, 10.8 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 24.7 million shares. The stock has ranged in price between $13.68-$14.00 after having opened the day at $13.98 as compared to the previous trading day's close of $14.10.

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 $95.1 billion and is part of the energy industry. Shares are up 2.3% year-to-date as of the close of trading on Friday. Currently there are 2 analysts that rate Petroleo Brasileiro SA Petrobras a buy, no analysts rate it a sell, and 6 rate it a hold.

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.

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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