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 21 points (0.1%) at 16,839 as of Wednesday, June 25, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,709 issues advancing vs. 1,282 declining with 166 unchanged.

The Basic Materials sector currently sits up 0.3% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the sector include Valero Energy ( VLO), down 10.3%, Marathon Petroleum ( MPC), down 7.9%, Phillips 66 ( PSX), down 5.1%, Statoil ASA ( STO), down 1.4% and Exxon Mobil Corporation ( XOM), down 1.0%. Top gainers within the sector include Schlumberger ( SLB), up 4.7%, Pioneer Natural Resources ( PXD), up 3.8%, Devon Energy ( DVN), up 2.0%, EOG Resources ( EOG), up 2.0% and Baker Hughes ( BHI), up 1.9%.

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

3. HollyFrontier ( HFC) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, HollyFrontier is down $3.99 (-8.2%) to $44.98 on heavy volume. Thus far, 7.1 million shares of HollyFrontier exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $44.75-$47.00 after having opened the day at $46.75 as compared to the previous trading day's close of $48.97.

HollyFrontier Corporation operates as an independent petroleum refiner in the United States. It produces high-value refined products, such as gasoline, diesel fuel, jet fuel, specialty lubricant products, liquid petroleum gas, fuel oil, and specialty and modified asphalt. HollyFrontier has a market cap of $9.9 billion and is part of the energy industry. Shares are down 1.4% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts that rate HollyFrontier a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates HollyFrontier 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, attractive valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full HollyFrontier 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, Tesoro ( TSO) is down $3.82 (-6.3%) to $57.10 on heavy volume. Thus far, 4.6 million shares of Tesoro exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $56.44-$59.25 after having opened the day at $58.42 as compared to the previous trading day's close of $60.92.

Tesoro Corporation, together with its subsidiaries, is engaged in refining and marketing petroleum products in the United States. It operates in two segments, Refining and Retail. Tesoro has a market cap of $7.9 billion and is part of the energy industry. Shares are up 4.1% year-to-date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Tesoro a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Tesoro as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Tesoro 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, LyondellBasell Industries ( LYB) is down $1.23 (-1.2%) to $98.87 on average volume. Thus far, 1.7 million shares of LyondellBasell Industries exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $98.63-$100.35 after having opened the day at $99.33 as compared to the previous trading day's close of $100.10.

LyondellBasell Industries N.V., together with its subsidiaries, manufactures chemicals and polymers; refines crude oil; produces gasoline blending components; and develops and licenses technologies for production of polymers. LyondellBasell Industries has a market cap of $52.8 billion and is part of the chemicals industry. Shares are up 24.7% year-to-date as of the close of trading on Tuesday. Currently there are 11 analysts that rate LyondellBasell Industries a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates LyondellBasell Industries as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full LyondellBasell Industries 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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