Peabody Energy Corporation (BTU): Today's Featured Metals & Mining Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Peabody Energy Corporation ( BTU) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Peabody Energy Corporation fell 44 cents (-1.9%) to $22.36 on light volume. Throughout the day, 6.4 million shares of Peabody Energy Corporation exchanged hands as compared to its average daily volume of 8.7 million shares. The stock ranged in price between $22.18-$22.87 after having opened the day at $22.68 as compared to the previous trading day's close of $22.80. Other companies within the Metals & Mining industry that declined today were: China Precision Steel ( CPSL), down 13.2%, Claude Resources ( CGR), down 9.5%, Crosshair Energy ( CXZ), down 9%, and Cardero Resources Corporation ( CDY), down 7.9%.

Peabody Energy Corporation engages in the mining of coal. It mines, prepares, and sells thermal coal to electric utilities and metallurgical coal to industrial customers. Peabody Energy Corporation has a market cap of $6.27 billion and is part of the basic materials sector. The company has a P/E ratio of 6.9, above the average metals & mining industry P/E ratio of 6.7 and below the S&P 500 P/E ratio of 17.7. Shares are down 31.1% year to date as of the close of trading on Monday. Currently there are 18 analysts that rate Peabody Energy Corporation a buy, one analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates Peabody Energy Corporation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and weak operating cash flow.

On the positive front, Northern Dynasty Minerals ( NAK), up 14%, Molycorp ( MCP), up 12.9%, Timberline Resources Corporation ( TLR), up 10.3%, and Quest Rare Minerals ( QRM), up 7.7%, were all gainers within the metals & mining industry with Southern Copper Corporation ( SCCO) 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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