Vale SA (VALE): 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.

Vale ( VALE) pushed the Metals & Mining industry higher today making it today's featured metals & mining winner. The industry as a whole closed the day down 0.3%. By the end of trading, Vale rose 50 cents (2.8%) to $18.21 on average volume. Throughout the day, 26.2 million shares of Vale exchanged hands as compared to its average daily volume of 20 million shares. The stock ranged in a price between $17.54-$18.30 after having opened the day at $17.64 as compared to the previous trading day's close of $17.71. Other companies within the Metals & Mining industry that increased today were: Timberline Resources Corporation ( TLR), up 11.5%, Cliffs Natural Resources ( CLF), up 5.8%, Walter Energy ( WLT), up 5.1%, and AK Steel Holding Corporation ( AKS), up 4.7%.
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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 $127.89 billion and is part of the basic materials sector. The company has a P/E ratio of 4.1, below the average metals & mining industry P/E ratio of six and below the S&P 500 P/E ratio of 17.7. Shares are down 16.3% year to date as of the close of trading on Friday. Currently there are three analysts that rate Vale a buy, two analysts rate it a sell, and eight 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 negative front, Pacific Booker Minerals ( PBM), down 6.1%, Primero Mining ( PPP), down 5.3%, Minco Gold Corporation ( MGH), down 5.3%, and Golden Star Resources ( GSS), down 5%, were all laggards within the metals & mining industry with Iamgold ( IAG) 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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