3 Basic Materials Stocks Driving The Sector Higher

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.

The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 13 points (0.1%) at 16,969 as of Wednesday, July 2, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,178 issues advancing vs. 1,877 declining with 123 unchanged.

The Basic Materials sector as a whole closed the day up 0.2% versus the S&P 500, which was unchanged. Top gainers within the Basic Materials sector included Flexible Solutions International ( FSI), up 3.6%, Entree Gold ( EGI), up 5.9%, China Natural Resources ( CHNR), up 25.0%, Minco Gold ( MGH), up 2.7% and Enerjex Resources ( ENRJ), up 1.5%.

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

Enerjex Resources ( ENRJ) is one of the companies that pushed the Basic Materials sector higher today. Enerjex Resources was up $0.11 (1.5%) to $7.36 on heavy volume. Throughout the day, 11,650 shares of Enerjex Resources exchanged hands as compared to its average daily volume of 6,100 shares. The stock ranged in a price between $7.01-$7.36 after having opened the day at $7.35 as compared to the previous trading day's close of $7.25.

Enerjex Resources has a market cap of $51.1 million and is part of the metals & mining industry. Shares are down 12.1% year-to-date as of the close of trading on Tuesday.

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Highlights from TheStreet Ratings analysis on ENRJ go as follows:

You can view the full analysis from the report here: Enerjex Resources Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close, Entree Gold ( EGI) was up $0.02 (5.9%) to $0.31 on average volume. Throughout the day, 83,047 shares of Entree Gold exchanged hands as compared to its average daily volume of 65,400 shares. The stock ranged in a price between $0.29-$0.32 after having opened the day at $0.29 as compared to the previous trading day's close of $0.29.

Entree Gold has a market cap of $44.8 million and is part of the metals & mining industry. Shares are up 8.9% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on EGI go as follows:

You can view the full analysis from the report here: Entree Gold Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Flexible Solutions International ( FSI) was another company that pushed the Basic Materials sector higher today. Flexible Solutions International was up $0.03 (3.6%) to $0.86 on light volume. Throughout the day, 10,949 shares of Flexible Solutions International exchanged hands as compared to its average daily volume of 18,500 shares. The stock ranged in a price between $0.85-$0.87 after having opened the day at $0.87 as compared to the previous trading day's close of $0.83.

Flexible Solutions International, Inc., together with its subsidiaries, develops, manufactures, and markets specialty chemicals that slow the evaporation of water. Flexible Solutions International has a market cap of $11.1 million and is part of the metals & mining industry. Shares are down 13.5% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Flexible Solutions International a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Flexible Solutions International as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share.

Highlights from TheStreet Ratings analysis on FSI go as follows:

  • This stock has managed to rise its share value by 10.25% over the past twelve months. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • FSI's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.28, which illustrates the ability to avoid short-term cash problems.
  • 35.54% is the gross profit margin for FLEXIBLE SOLUTIONS INTL INC which we consider to be strong. Regardless of FSI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FSI's net profit margin of -4.09% significantly underperformed when compared to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Chemicals industry. The net income has significantly decreased by 340.0% when compared to the same quarter one year ago, falling from $0.07 million to -$0.16 million.
  • Net operating cash flow has significantly decreased to -$0.50 million or 972.34% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Flexible Solutions International Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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.

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