3 Stocks Moving The Basic Materials Sector Upward

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 212 points (1.2%) at 17,885 as of Thursday, Feb. 5, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,364 issues advancing vs. 754 declining with 102 unchanged.

The Basic Materials sector as a whole closed the day up 2.4% versus the S&P 500, which was up 1.0%. Top gainers within the Basic Materials sector included Ikonics ( IKNX), up 7.4%, India Globalization Capital ( IGC), up 5.4%, Silver Bull Resources ( SVBL), up 2.0%, Saratoga Resources ( SARA), up 5.3% and Revett Mining ( RVM), up 8.8%.

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

Saratoga Resources ( SARA) is one of the companies that pushed the Basic Materials sector higher today. Saratoga Resources was up $0.01 (5.3%) to $0.20 on average volume. Throughout the day, 124,881 shares of Saratoga Resources exchanged hands as compared to its average daily volume of 152,900 shares. The stock ranged in a price between $0.17-$0.22 after having opened the day at $0.20 as compared to the previous trading day's close of $0.19.

Saratoga Resources, Inc., an independent oil and natural gas company, acquires, exploits, produces, and develops crude oil and natural gas properties in the United States. Saratoga Resources has a market cap of $5.1 million and is part of the energy industry. Shares are down 23.5% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Saratoga Resources a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Saratoga Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on SARA go as follows:

  • The debt-to-equity ratio is very high at 14.32 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, SARA maintains a poor quick ratio of 0.78, which illustrates the inability to avoid short-term cash problems.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, SARATOGA RESOURCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • SARATOGA RESOURCES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, SARATOGA RESOURCES INC reported poor results of -$0.85 versus -$0.13 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 79.4% when compared to the same quarter one year ago, falling from -$5.73 million to -$10.27 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 84.77%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 73.68% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

You can view the full analysis from the report here: Saratoga Resources Ratings Report

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At the close, Silver Bull Resources ( SVBL) was up $0.00 (2.0%) to $0.14 on light volume. Throughout the day, 35,087 shares of Silver Bull Resources exchanged hands as compared to its average daily volume of 185,900 shares. The stock ranged in a price between $0.14-$0.14 after having opened the day at $0.14 as compared to the previous trading day's close of $0.14.

Silver Bull Resources has a market cap of $22.3 million and is part of the energy industry. Shares are down 5.4% year-to-date as of the close of trading on Wednesday.

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India Globalization Capital ( IGC) was another company that pushed the Basic Materials sector higher today. India Globalization Capital was up $0.03 (5.4%) to $0.59 on light volume. Throughout the day, 8,192 shares of India Globalization Capital exchanged hands as compared to its average daily volume of 39,600 shares. The stock ranged in a price between $0.58-$0.60 after having opened the day at $0.59 as compared to the previous trading day's close of $0.56.

India Globalization Capital has a market cap of $8.3 million and is part of the energy industry. Shares are down 16.8% year-to-date as of the close of trading on Wednesday.

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.