3 Stocks Pushing The Basic Materials Sector Lower

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The Basic Materials sector as a whole closed the day up 0.1% versus the S&P 500, which was up 0.4%. Laggards within the Basic Materials sector included Timberline Resources ( TLR), down 10.0%, Pacific Booker Minerals ( PBM), down 3.2%, PrimeEnergy ( PNRG), down 3.0%, Eurasian Minerals ( EMXX), down 4.4% and United States Antimony ( UAMY), down 13.1%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today:

China Petroleum & Chemical ( SNP) is one of the companies that pushed the Basic Materials sector lower today. China Petroleum & Chemical was down $2.04 (2.0%) to $101.97 on average volume. Throughout the day, 166,758 shares of China Petroleum & Chemical exchanged hands as compared to its average daily volume of 127,200 shares. The stock ranged in price between $101.06-$102.09 after having opened the day at $101.92 as compared to the previous trading day's close of $104.01.

China Petroleum & Chemical Corporation, an energy and chemical company, through its subsidiaries, is engaged in the oil and gas, and chemical operations in the People's Republic of China. China Petroleum & Chemical has a market cap of $122.5 billion and is part of the energy industry. Shares are up 26.6% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates China Petroleum & Chemical a buy, 1 analyst rates it a sell, and 1 rates it a hold.

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TheStreet Ratings rates China Petroleum & Chemical as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from TheStreet Ratings analysis on SNP go as follows:

  • Powered by its strong earnings growth of 50.87% and other important driving factors, this stock has surged by 37.07% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Oil, Gas & Consumable Fuels industry average. The net income increased by 32.3% when compared to the same quarter one year prior, rising from $2,248.69 million to $2,974.25 million.
  • Net operating cash flow has significantly increased by 81.34% to $7,353.63 million when compared to the same quarter last year. In addition, CHINA PETROLEUM & CHEM CORP has also vastly surpassed the industry average cash flow growth rate of -5.22%.
  • CHINA PETROLEUM & CHEM CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CHINA PETROLEUM & CHEM CORP reported lower earnings of $8.47 versus $8.73 in the prior year. This year, the market expects an improvement in earnings ($9.65 versus $8.47).

You can view the full analysis from the report here: China Petroleum & Chemical Ratings Report

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