3 Stocks Driving The Basic Materials 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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 167 points (1.0%) at 17,113 as of Friday, Sept. 26, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,244 issues advancing vs. 828 declining with 137 unchanged.

The Basic Materials sector as a whole closed the day up 0.7% versus the S&P 500, which was up 0.9%. Top gainers within the Basic Materials sector included Timberline Resources ( TLR), up 4.4%, Pacific Booker Minerals ( PBM), up 3.2%, Ossen Innovation ( OSN), up 14.9%, Eurasian Minerals ( EMXX), up 2.2% and Alderon Iron Ore ( AXX), up 2.1%.

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

Alderon Iron Ore ( AXX) is one of the companies that pushed the Basic Materials sector higher today. Alderon Iron Ore was up $0.02 (2.1%) to $0.81 on light volume. Throughout the day, 19,598 shares of Alderon Iron Ore exchanged hands as compared to its average daily volume of 51,800 shares. The stock ranged in a price between $0.80-$0.85 after having opened the day at $0.82 as compared to the previous trading day's close of $0.79.

Alderon Iron Ore has a market cap of $106.7 million and is part of the energy industry. Shares are down 49.7% year-to-date as of the close of trading on Thursday.

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At the close, Ossen Innovation ( OSN) was up $0.12 (14.9%) to $0.91 on heavy volume. Throughout the day, 38,208 shares of Ossen Innovation exchanged hands as compared to its average daily volume of 20,500 shares. The stock ranged in a price between $0.78-$0.92 after having opened the day at $0.78 as compared to the previous trading day's close of $0.79.

Ossen Innovation Co., Ltd. manufactures and sells various plain surface prestressed steel materials, and rare earth coated and zinc coated prestressed steel materials in the People's Republic of China. Ossen Innovation has a market cap of $15.7 million and is part of the energy industry. Shares are down 33.6% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Ossen Innovation a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Ossen Innovation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on OSN go as follows:

  • OSN's very impressive revenue growth greatly exceeded the industry average of 0.6%. Since the same quarter one year prior, revenues leaped by 92.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • This stock has managed to rise its share value by 27.14% over the past twelve months. 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 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 on the basis of return on equity, OSSEN INNOVATION CO LTD -ADR has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for OSSEN INNOVATION CO LTD -ADR is currently extremely low, coming in at 10.81%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.71% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to -$1.13 million or 112.47% 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: Ossen Innovation Ratings Report

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Timberline Resources ( TLR) was another company that pushed the Basic Materials sector higher today. Timberline Resources was up $0.00 (4.4%) to $0.07 on light volume. Throughout the day, 119,659 shares of Timberline Resources exchanged hands as compared to its average daily volume of 181,800 shares. The stock ranged in a price between $0.06-$0.07 after having opened the day at $0.07 as compared to the previous trading day's close of $0.07.

Timberline Resources has a market cap of $5.1 million and is part of the energy industry. Shares are down 61.2% year-to-date as of the close of trading on Thursday.

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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