3 Basic Materials Stocks Pushing Sector Growth

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 up today with the Dow Jones Industrial Average ( ^DJI) trading down 16 points (-0.1%) at 16,836 as of Monday, June 30, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,605 issues advancing vs. 1,347 declining with 197 unchanged.

The Basic Materials sector currently sits up 0.2% versus the S&P 500, which is unchanged. Top gainers within the sector include PPG Industries ( PPG), up 2.6%, Linn Energy ( LINE), up 1.8%, Chesapeake Energy ( CHK), up 1.6%, Transocean ( RIG), up 1.1% and Apache Corporation ( APA), up 0.9%. On the negative front, top decliners within the sector include Valero Energy ( VLO), down 2.0%, Gerdau ( GGB), down 1.7%, Ultrapar Participacoes ( UGP), down 1.7%, China Petroleum & Chemical ( SNP), down 1.2% and Phillips 66 ( PSX), down 0.9%.

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

3. Kinder Morgan ( KMI) is one of the companies pushing the Basic Materials sector higher today. As of noon trading, Kinder Morgan is up $0.20 (0.6%) to $36.24 on light volume. Thus far, 1.5 million shares of Kinder Morgan exchanged hands as compared to its average daily volume of 5.5 million shares. The stock has ranged in price between $35.95-$36.24 after having opened the day at $36.10 as compared to the previous trading day's close of $36.04.

Kinder Morgan, Inc. operates as a midstream and energy company in North America. It operates through Natural Gas Pipelines, CO2 KMP, Products Pipelines KMP, Terminals KMP, Kinder Morgan Canada KMP, and Other segments. Kinder Morgan has a market cap of $37.0 billion and is part of the energy industry. Shares are up 0.1% year-to-date as of the close of trading on Friday. Currently there are 6 analysts who rate Kinder Morgan a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Kinder Morgan as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Kinder Morgan Ratings Report now.

3x UPSIDE POTENTIAL: 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 up $1.45 (2.1%) to $71.40 on average volume. Thus far, 2.3 million shares of Cheniere Energy exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $70.19-$72.76 after having opened the day at $70.20 as compared to the previous trading day's close of $69.95.

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 $16.5 billion and is part of the energy industry. Shares are up 62.2% year-to-date as of the close of trading on Friday. Currently there are 3 analysts who rate Cheniere Energy a buy, no analysts rate it a sell, and 2 rate 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.

3x UPSIDE POTENTIAL: 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 up $0.93 (1.0%) to $97.80 on light volume. Thus far, 1.1 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 $96.63-$98.13 after having opened the day at $97.14 as compared to the previous trading day's close of $96.87.

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 $51.9 billion and is part of the chemicals industry. Shares are up 20.7% year-to-date as of the close of trading on Friday. Currently there are 11 analysts who 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.

3x UPSIDE POTENTIAL: 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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