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 down 0.2% versus the S&P 500, which was down 0.3%. Laggards within the Basic Materials sector included Alderon Iron Ore ( AXX), down 4.4%, Entree Gold ( EGI), down 2.9%, Ikonics ( IKNX), down 3.9%, Tengasco ( TGC), down 2.9% and Barnwell Industries ( BRN), down 6.2%.

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 $1.98 (2.4%) to $79.04 on average volume. Throughout the day, 169,906 shares of China Petroleum & Chemical exchanged hands as compared to its average daily volume of 160,100 shares. The stock ranged in price between $78.91-$79.77 after having opened the day at $79.62 as compared to the previous trading day's close of $81.02.

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 $95.6 billion and is part of the energy industry. Shares are up 0.0% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate 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 buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from TheStreet Ratings analysis on SNP go as follows:

  • The revenue growth came in higher than the industry average of 11.8%. Since the same quarter one year prior, revenues slightly increased by 5.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has slightly increased to $8,251.64 million or 7.90% when compared to the same quarter last year. In addition, CHINA PETROLEUM & CHEM CORP has also modestly surpassed the industry average cash flow growth rate of -2.03%.
  • The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.23 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • In its most recent trading session, SNP has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

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, Entree Gold ( EGI) was down $0.01 (2.9%) to $0.17 on light volume. Throughout the day, 54,722 shares of Entree Gold exchanged hands as compared to its average daily volume of 81,600 shares. The stock ranged in price between $0.17-$0.18 after having opened the day at $0.17 as compared to the previous trading day's close of $0.18.

Entree Gold has a market cap of $27.2 million and is part of the energy industry. Shares are up 5.0% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Alderon Iron Ore ( AXX) was another company that pushed the Basic Materials sector lower today. Alderon Iron Ore was down $0.01 (4.4%) to $0.27 on average volume. Throughout the day, 56,967 shares of Alderon Iron Ore exchanged hands as compared to its average daily volume of 47,200 shares. The stock ranged in price between $0.25-$0.27 after having opened the day at $0.27 as compared to the previous trading day's close of $0.28.

Alderon Iron Ore has a market cap of $36.0 million and is part of the energy industry. Shares are down 18.1% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Alderon Iron Ore a buy, no analysts rate it a sell, and none rate it a hold.

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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