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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 77 points (-0.5%) at 16,791 as of Thursday, June 26, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,231 issues advancing vs. 1,744 declining with 167 unchanged.

The Basic Materials sector currently sits down 0.1% versus the S&P 500, which is down 0.4%. On the negative front, top decliners within the sector include Turquoise Hill Resources ( TRQ), down 5.0%, Pioneer Natural Resources ( PXD), down 3.0%, Total ( TOT), down 1.3%, Devon Energy ( DVN), down 1.3% and EOG Resources ( EOG), down 0.9%. Top gainers within the sector include Vale ( VALE), up 2.9%, Schlumberger ( SLB), up 2.3%, China Petroleum & Chemical ( SNP), up 2.2%, Valero Energy ( VLO), up 2.2% and PetroChina ( PTR), up 1.9%.

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

3. Ecopetrol ( EC) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Ecopetrol is down $0.46 (-1.2%) to $36.43 on average volume. Thus far, 193,164 shares of Ecopetrol exchanged hands as compared to its average daily volume of 486,700 shares. The stock has ranged in price between $36.10-$36.86 after having opened the day at $36.78 as compared to the previous trading day's close of $36.89.

Ecopetrol S.A., an integrated oil company, is engaged in the exploration, development, and production of crude oil and natural gas primarily in Colombia, Peru, Brazil, and the United States Gulf Coast. Ecopetrol has a market cap of $75.8 billion and is part of the energy industry. Shares are down 4.1% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Ecopetrol a buy, 2 analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Ecopetrol as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, weak operating cash flow and a generally disappointing performance in the stock itself. Get the full Ecopetrol 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, Southwestern Energy ( SWN) is down $1.02 (-2.2%) to $44.89 on average volume. Thus far, 1.9 million shares of Southwestern Energy exchanged hands as compared to its average daily volume of 3.9 million shares. The stock has ranged in price between $44.84-$46.08 after having opened the day at $46.01 as compared to the previous trading day's close of $45.91.

Southwestern Energy Company, an independent energy company, is engaged in the exploration, development and production of natural gas and oil in the United States. The company operates in two segments, Exploration and Production, and Midstream Services. Southwestern Energy has a market cap of $16.2 billion and is part of the energy industry. Shares are up 16.7% year-to-date as of the close of trading on Wednesday. Currently there are 7 analysts that rate Southwestern Energy a buy, 1 analyst rates it a sell, and 16 rate it a hold.

TheStreet Ratings rates Southwestern Energy as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Southwestern 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, Transocean ( RIG) is down $1.16 (-2.6%) to $43.61 on average volume. Thus far, 2.7 million shares of Transocean exchanged hands as compared to its average daily volume of 4.7 million shares. The stock has ranged in price between $43.36-$44.78 after having opened the day at $44.72 as compared to the previous trading day's close of $44.77.

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 $16.2 billion and is part of the energy industry. Shares are down 9.4% year-to-date as of the close of trading on Wednesday. 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 buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. 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.

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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