Vale SA (VALE): Today's Featured Metals & Mining Laggard

Vale ( VALE) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Vale fell 22 cents (-1.2%) to $18.05 on light volume. Throughout the day, 13.9 million shares of Vale exchanged hands as compared to its average daily volume of 19.1 million shares. The stock ranged in price between $18.01-$18.40 after having opened the day at $18.28 as compared to the previous trading day's close of $18.27. Other company's within the Metals & Mining industry that declined today were: Midway Gold ( MDW), down 11.5%, Entree Gold ( EGI), down 6.7%, Lake Shore Gold ( LSG), down 6.4%, and Paramount Gold and Silver Corporation ( PZG), down 6.2%.

Vale S.A. engages in the exploration, production, and sale of basic metals in Brazil and internationally. The company is also involved in fertilizers, logistics, and steel businesses. Vale has a market cap of $93.74 billion and is part of the basic materials sector. The company has a P/E ratio of 4.2, below the average metals & mining industry P/E ratio of five and below the S&P 500 P/E ratio of 17.7. Shares are down 14.8% year to date as of the close of trading on Monday. Currently there are four analysts that rate Vale a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Vale as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

On the positive front, Uranium Resources ( URRE), up 50.9%, James River Coal Company ( JRCC), up 16.8%, Ur-Energy ( URG), up 11.8%, and China Natural Resources ( CHNR), up 11.6%, were all gainers within the metals & mining industry with Nucor ( NUE) being today's featured metals & mining industry leader.

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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