Gerdau SA (GGB): 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.

Gerdau ( GGB) pushed the Metals & Mining industry higher today making it today's featured metals & mining winner. The industry as a whole closed the day up 0.6%. By the end of trading, Gerdau rose 10 cents (1.2%) to $8.20 on average volume. Throughout the day, seven million shares of Gerdau exchanged hands as compared to its average daily volume of 6.1 million shares. The stock ranged in a price between $8.02-$8.31 after having opened the day at $8.27 as compared to the previous trading day's close of $8.10. Other companies within the Metals & Mining industry that increased today were: Avalon Rare Metals ( AVL), up 16.5%, China Gerui Advanced Materials Group ( CHOP), up 8.7%, Golden Star Resources ( GSS), up 8%, and SilverCrest Mines ( SVLC), up 7.8%.
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Gerdau S.A. engages in the production and commercialization of steel products worldwide. Gerdau has a market cap of $13.8 billion and is part of the basic materials sector. The company has a P/E ratio of 6.7, below the S&P 500 P/E ratio of 17.7. Shares are down 9.8% year to date as of the close of trading on Thursday. Currently there are two analysts that rate Gerdau a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Gerdau as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.

On the negative front, North American Palladium ( PAL), down 7.5%, Century Aluminum Company ( CENX), down 6.9%, Allied Nevada Gold ( ANV), down 6.5%, and Crosshair Energy ( CXZ), down 6.2%, were all laggards within the metals & mining industry with Peabody Energy Corporation ( BTU) 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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