3 Stocks Pushing The Basic Materials Sector Lower

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 41 points (0.2%) at 17,110 as of Friday, Sept. 5, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,666 issues advancing vs. 1,285 declining with 190 unchanged.

The Basic Materials sector currently is unchanged today versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the sector include Companhia Siderurgica Nacional ( SID), down 3.3%, Goldcorp ( GG), down 1.4% and PetroChina ( PTR), down 0.6%. Top gainers within the sector include BP ( BP), up 2.4%, POSCO ( PKX), up 2.3%, Pioneer Natural Resources ( PXD), up 1.0%, Tenaris ( TS), up 0.9% and Phillips 66 ( PSX), up 0.7%.

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

3. Gerdau ( GGB) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Gerdau is down $0.12 (-2.0%) to $5.93 on average volume. Thus far, 2.3 million shares of Gerdau exchanged hands as compared to its average daily volume of 5.5 million shares. The stock has ranged in price between $5.92-$6.08 after having opened the day at $6.04 as compared to the previous trading day's close of $6.05.

Gerdau S.A. produces and commercializes steel products worldwide. Gerdau has a market cap of $10.2 billion and is part of the metals & mining industry. Shares are down 22.8% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts that rate Gerdau a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Gerdau as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself. Get the full Gerdau 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, Seadrill ( SDRL) is down $0.87 (-2.5%) to $34.34 on heavy volume. Thus far, 3.8 million shares of Seadrill exchanged hands as compared to its average daily volume of 4.0 million shares. The stock has ranged in price between $34.25-$34.85 after having opened the day at $34.83 as compared to the previous trading day's close of $35.21.

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 $17.5 billion and is part of the energy industry. Shares are down 14.3% year-to-date as of the close of trading on Thursday. Currently there are 3 analysts that rate Seadrill a buy, 1 analyst rates 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 notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. 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.

1. As of noon trading, National Oilwell Varco ( NOV) is down $0.46 (-0.6%) to $83.17 on average volume. Thus far, 1.4 million shares of National Oilwell Varco exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $82.25-$83.89 after having opened the day at $83.67 as compared to the previous trading day's close of $83.63.

National Oilwell Varco, Inc. provides equipment and components for oil and gas drilling and production; oilfield services; and supply chain integration services to the upstream oil and gas industry worldwide. National Oilwell Varco has a market cap of $36.6 billion and is part of the energy industry. Shares are up 5.2% year-to-date as of the close of trading on Thursday. Currently there are 9 analysts that rate National Oilwell Varco a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates National Oilwell Varco as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full National Oilwell Varco 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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