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

Gerdau ( GGB) pushed the Metals & Mining industry higher today making it today's featured metals & mining winner. The industry as a whole closed the day up 4.1%. By the end of trading, Gerdau rose 85 cents (10.8%) to $8.76 on average volume. Throughout the day, 8.8 million shares of Gerdau exchanged hands as compared to its average daily volume of 7.1 million shares. The stock ranged in a price between $8.38-$8.81 after having opened the day at $8.42 as compared to the previous trading day's close of $7.91. Other companies within the Metals & Mining industry that increased today were: Kingold Jewelry ( KGJI), up 26.9%, China Precision Steel ( CPSL), up 14.6%, USEC ( USU), up 14.2%, and Hallador Energy ( HNRG), up 13.4%.

Gerdau S.A. engages in the production and sale of steel products in Brazil and internationally. Gerdau has a market cap of $13.52 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 1.4% 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 negative front, Atlatsa Resources ( ATL), down 10.5%, James River Coal Company ( JRCC), down 5.2%, Patriot Coal Corporation ( PCX), down 4.3%, and Sutor Technology Group ( SUTR), down 4.2%, were all losers within the metals & mining industry with AK Steel Holding Corporation ( AKS) being today's metals & mining industry loser.

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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