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.

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

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, United States Antimony ( UAMY) was down $0.18 (13.1%) to $1.19 on heavy volume. Throughout the day, 49,327 shares of United States Antimony exchanged hands as compared to its average daily volume of 28,300 shares. The stock ranged in price between $1.19-$1.42 after having opened the day at $1.31 as compared to the previous trading day's close of $1.37.

United States Antimony Corporation produces and sells antimony, silver, gold, and zeolite products in the United States. United States Antimony has a market cap of $94.6 million and is part of the energy industry. Shares are down 24.9% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates United States Antimony as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on UAMY go as follows:

  • The gross profit margin for U S ANTIMONY CORP is currently extremely low, coming in at 1.89%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -18.67% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $0.13 million or 44.49% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • U S ANTIMONY CORP reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, U S ANTIMONY CORP reported poor results of -$0.03 versus -$0.01 in the prior year.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Metals & Mining industry average, but is greater than that of the S&P 500. The net income increased by 18.1% when compared to the same quarter one year prior, going from -$0.52 million to -$0.42 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market, U S ANTIMONY CORP's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: United States Antimony 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.

Timberline Resources ( TLR) was another company that pushed the Basic Materials sector lower today. Timberline Resources was down $0.01 (10.0%) to $0.07 on heavy volume. Throughout the day, 517,519 shares of Timberline Resources exchanged hands as compared to its average daily volume of 170,600 shares. The stock ranged in price between $0.07-$0.08 after having opened the day at $0.08 as compared to the previous trading day's close of $0.08.

Timberline Resources has a market cap of $6.1 million and is part of the energy industry. Shares are down 53.6% 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.

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