3 Stocks Raising 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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 95.08 points (-0.5%) at 17,729 as of Monday, Feb. 9, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,265 issues advancing vs. 1,837 declining with 125 unchanged.

The Basic Materials sector as a whole closed the day up 1.1% versus the S&P 500, which was down 0.4%. Top gainers within the Basic Materials sector included Quest Rare Minerals ( QRM), up 4.4%, Tengasco ( TGC), up 3.7%, Barnwell Industries ( BRN), up 2.3%, China Gerui Advanced Materials Group ( CHOP), up 5.9% and United States Antimony ( UAMY), up 18.6%.

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

United States Antimony ( UAMY) is one of the companies that pushed the Basic Materials sector higher today. United States Antimony was up $0.11 (18.6%) to $0.70 on average volume. Throughout the day, 51,254 shares of United States Antimony exchanged hands as compared to its average daily volume of 42,800 shares. The stock ranged in a price between $0.61-$0.70 after having opened the day at $0.61 as compared to the previous trading day's close of $0.59.

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 $45.0 million and is part of the metals & mining industry. Shares are down 15.7% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate United States Antimony 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.

TheStreet Ratings rates United States Antimony as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on UAMY go as follows:

  • 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 Metals & Mining industry. The net income has significantly decreased by 252.2% when compared to the same quarter one year ago, falling from -$0.16 million to -$0.56 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness 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.
  • Net operating cash flow has significantly decreased to -$1.29 million or 1648.64% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • U S ANTIMONY CORP has shown no change in earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has suffered a declining pattern 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.
  • This stock's share value has moved by only 66.51% over the past year. 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: 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.

At the close, China Gerui Advanced Materials Group ( CHOP) was up $0.05 (5.9%) to $0.89 on light volume. Throughout the day, 5,912 shares of China Gerui Advanced Materials Group exchanged hands as compared to its average daily volume of 25,200 shares. The stock ranged in a price between $0.87-$0.95 after having opened the day at $0.95 as compared to the previous trading day's close of $0.84.

China Gerui Advanced Materials Group Limited operates as a contract manufacturer of cold-rolled narrow strip steel products in the People's Republic of China and internationally. The company converts steel manufactured by third parties into thin steel sheets and strips. China Gerui Advanced Materials Group has a market cap of $4.7 million and is part of the metals & mining industry. Shares are down 55.6% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate China Gerui Advanced Materials Group 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.

TheStreet Ratings rates China Gerui Advanced Materials Group 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, disappointing return on equity, weak operating cash flow and generally high debt management risk.

Highlights from TheStreet Ratings analysis on CHOP go as follows:

  • CHINA GERUI ADV MATERIALS GP 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, CHINA GERUI ADV MATERIALS GP swung to a loss, reporting -$2.30 versus $4.50 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 Metals & Mining industry. The net income has significantly decreased by 655.5% when compared to the same quarter one year ago, falling from -$4.37 million to -$33.04 million.
  • 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 Metals & Mining industry and the overall market, CHINA GERUI ADV MATERIALS GP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$9.97 million or 228.03% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 92.89%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 700.00% 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: China Gerui Advanced Materials Group 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.

Quest Rare Minerals ( QRM) was another company that pushed the Basic Materials sector higher today. Quest Rare Minerals was up $0.00 (4.4%) to $0.09 on average volume. Throughout the day, 128,954 shares of Quest Rare Minerals exchanged hands as compared to its average daily volume of 143,800 shares. The stock ranged in a price between $0.08-$0.09 after having opened the day at $0.09 as compared to the previous trading day's close of $0.09.

Quest Rare Minerals has a market cap of $6.2 million and is part of the metals & mining industry. Shares are down 28.6% year-to-date as of the close of trading on Friday.

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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