Gerdau SA (GGB): Today's Featured Metals & Mining Loser

Gerdau ( GGB) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining loser. The industry as a whole closed the day up 1%. By the end of trading, Gerdau fell 24 cents (-3%) to $7.71 on average volume. Throughout the day, 7.6 million shares of Gerdau exchanged hands as compared to its average daily volume of 7.1 million shares. The stock ranged in price between $7.60-$7.89 after having opened the day at $7.61 as compared to the previous trading day's close of $7.95. Other company's within the Metals & Mining industry that declined today were: Ossen Innovation ( OSN), down 10.5%, China Natural Resources ( CHNR), down 10.5%, US Silica Holdings ( SLCA), down 10%, and Quaterra Resources ( QMM), down 9.1%.

Gerdau S.A. engages in the production and sale of steel products in Brazil and internationally. Gerdau has a market cap of $13.57 billion and is part of the basic materials sector. The company has a P/E ratio of 6.6, below the average metals & mining industry P/E ratio of 12.1 and below the S&P 500 P/E ratio of 17.7. Shares are up 1.8% year to date as of the close of trading on Thursday. Currently there is one analyst that rates Gerdau a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Gerdau as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

On the positive front, Great Basin Gold ( GBG), up 16.5%, Kimber Resources ( KBX), up 14.9%, International Tower Hill Mines ( THM), up 12.3%, and Exeter Resource Corporation ( XRA), up 12.1%, were all gainers within the metals & mining industry with Barrick Gold Corporation ( ABX) being today's featured metals & mining industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the metals & mining industry could consider SPDR S&P Metals & Mining ETF ( XME) while those bearish on the metals & mining industry could consider PowerShares DB Base Metals Sht ETN ( BOS).
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