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 25 points (-0.1%) at 16,936 as of Monday, July 28, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,030 issues advancing vs. 1,900 declining with 205 unchanged.

The Basic Materials sector currently sits down 0.7% versus the S&P 500, which is down 0.2%. On the negative front, top decliners within the sector include YPF Sociedad Anonima ( YPF), down 4.0%, Pioneer Natural Resources ( PXD), down 1.6%, Canadian Natural Resources ( CNQ), down 1.5%, National Oilwell Varco ( NOV), down 1.5% and Halliburton ( HAL), down 1.5%. Top gainers within the sector include Ecopetrol ( EC), up 1.3%, Total ( TOT), up 0.7% and Exxon Mobil Corporation ( XOM), up 0.7%.

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

3. Seadrill ( SDRL) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Seadrill is down $1.05 (-2.8%) to $36.44 on heavy volume. Thus far, 3.3 million shares of Seadrill exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $36.18-$37.37 after having opened the day at $37.31 as compared to the previous trading day's close of $37.49.

Seadrill Limited, an offshore drilling contractor, provides offshore drilling services to the oil and gas industry worldwide. The company operates in three segments: Floaters, Jack-up Rigs, and Tender Rigs. Seadrill has a market cap of $17.6 billion and is part of the energy industry. Shares are down 8.7% year-to-date as of the close of trading on Friday. Currently there are 3 analysts that rate Seadrill a buy, 2 analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Seadrill as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity, good cash flow from operations, expanding profit margins and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Seadrill 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 liked this article you might like

Seadrill Secures New Cash as Part of Chapter 11 Filing

Trump Offshore Order Won't Solve Near-Term Woes for Oil Industry

Seadrill Stock Slipping Wednesday Following Yesterday's Surge

Seadrill Stock Slips Following Yesterday's Surge