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 up 0.4%. By the end of trading, Vale rose 41 cents (2.3%) to $18.42 on average volume. Throughout the day, 20.1 million shares of Vale exchanged hands as compared to its average daily volume of 15.2 million shares. The stock ranged in a price between $17.78-$18.48 after having opened the day at $17.98 as compared to the previous trading day's close of $18.01. Other companies within the Metals & Mining industry that increased today were: US Silica Holdings ( SLCA), up 17.8%, Timberline Resources Corporation ( TLR), up 15.2%, Platinum Group Metal ( PLG), up 9.1%, and Hi-Crush Partners ( HCLP), up 7.8%.
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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 energy, logistics, and steel businesses. Vale has a market cap of $93.22 billion and is part of the basic materials sector. The company has a P/E ratio of 4.2, below the S&P 500 P/E ratio of 17.7. Shares are down 13.7% year to date as of the close of trading on Monday. Currently there are four analysts that rate Vale a buy, two analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Vale 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 a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

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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