Tenaris SA (TS): Today's Featured Metals & Mining Winner

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.

Tenaris ( TS) pushed the Metals & Mining industry higher today making it today's featured metals & mining winner. The industry as a whole was unchanged today. By the end of trading, Tenaris rose 77 cents (1.9%) to $41.54 on average volume. Throughout the day, 1.6 million shares of Tenaris exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in a price between $41.40-$41.99 after having opened the day at $41.59 as compared to the previous trading day's close of $40.77. Other companies within the Metals & Mining industry that increased today were: Universal Stainless & Alloy Products ( USAP), up 11.4%, US Silica Holdings ( SLCA), up 6.4%, Augusta Resource Corporation ( AZC), up 5.2%, and Quaterra Resources ( QMM), up 5%.
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Tenaris S.A., through its subsidiaries, engages in the manufacture and sale of steel pipe products. Tenaris has a market cap of $24.68 billion and is part of the basic materials sector. The company has a P/E ratio of 37, above the average energy industry P/E ratio of 15 and above the S&P 500 P/E ratio of 17.7. Shares are up 9.7% year to date as of the close of trading on Friday. Currently there are seven analysts that rate Tenaris a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Tenaris as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Great Northern Iron Ore ( GNI), down 10.3%, Prospect Global Resources ( PGRX), down 9%, Keegan Resources ( KGN), down 8.9%, and Alderon Iron Ore ( AXX), down 6%, were all laggards within the metals & mining industry with Silver Wheaton Corporation ( SLW) being today's metals & mining industry laggard.

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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