3 Stocks Underperforming Today In The Basic Materials Sector

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 16 points (0.1%) at 16,738 as of Wednesday, June 4, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,399 issues advancing vs. 1,611 declining with 145 unchanged.

The Basic Materials sector currently sits up 0.2% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the sector include Total ( TOT), down 1.4%, Petroleo Brasileiro SA Petrobras ( PBR), down 1.4%, China Petroleum & Chemical ( SNP), down 1.3%, Valero Energy ( VLO), down 1.2% and TransCanada ( TRP), down 0.9%. Top gainers within the sector include Williams Partners ( WPZ), up 1.3%, Kinder Morgan ( KMI), up 1.0%, E I du Pont de Nemours & Company ( DD), up 0.8% and Apache Corporation ( APA), up 0.7%.

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

3. Royal Dutch Shell ( RDS.B) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Royal Dutch Shell is down $0.81 (-1.0%) to $81.99 on average volume. Thus far, 339,655 shares of Royal Dutch Shell exchanged hands as compared to its average daily volume of 662,200 shares. The stock has ranged in price between $81.87-$82.43 after having opened the day at $82.42 as compared to the previous trading day's close of $82.80.

Royal Dutch Shell plc operates as an independent oil and gas company worldwide. The company explores for and extracts crude oil, natural gas, and natural gas liquids. Royal Dutch Shell has a market cap of $262.1 billion and is part of the energy industry. Shares are up 10.2% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Royal Dutch Shell 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 Royal Dutch Shell 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 $1.75 (-2.6%) to $66.20 on average volume. Thus far, 1.6 million shares of Cheniere Energy exchanged hands as compared to its average daily volume of 3.4 million shares. The stock has ranged in price between $66.20-$67.67 after having opened the day at $67.60 as compared to the previous trading day's close of $67.95.

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 $16.3 billion and is part of the energy industry. Shares are up 57.6% year-to-date as of the close of trading on Tuesday. 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, BP ( BP) is down $0.46 (-0.9%) to $50.06 on average volume. Thus far, 2.9 million shares of BP exchanged hands as compared to its average daily volume of 4.7 million shares. The stock has ranged in price between $49.87-$50.11 after having opened the day at $50.07 as compared to the previous trading day's close of $50.52.

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 $172.2 billion and is part of the energy industry. Shares are up 3.9% year-to-date as of the close of trading on Tuesday. 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, increase in stock price during the past year 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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