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

Gerdau ( GGB) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day up 0.9%. By the end of trading, Gerdau fell 17 cents (-1.8%) to $9.36 on average volume. Throughout the day, 10.3 million shares of Gerdau exchanged hands as compared to its average daily volume of 7.7 million shares. The stock ranged in price between $9.28-$9.69 after having opened the day at $9.66 as compared to the previous trading day's close of $9.53. Other company's within the Metals & Mining industry that declined today were: China Shen Zhou Mining & Resources ( SHZ), down 21.1%, Timberline Resources Corporation ( TLR), down 11.4%, Quaterra Resources ( QMM), down 9.5%, and General Steel Holdings ( GSI), down 6.1%.

Gerdau S.A. engages in the production and sale of steel products in Brazil and internationally. Gerdau has a market cap of $15.8 billion and is part of the basic materials sector. The company has a P/E ratio of 7.7, below the average metals & mining industry P/E ratio of 14.1 and below the S&P 500 P/E ratio of 17.7. Shares are up 22.2% year to date as of the close of trading on Monday. 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. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow.

On the positive front, Jaguar Mining ( JAG), up 17.6%, Oxford Resource Partners ( OXF), up 14.8%, China Natural Resources ( CHNR), up 9%, and Avino Silver & Gold Mines ( ASM), up 8.3%, were all gainers within the metals & mining industry with Goldcorp ( GG) 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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