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 down 0.5%. By the end of trading, Gerdau rose 15 cents (2%) to $7.58 on average volume. Throughout the day, 5.6 million shares of Gerdau exchanged hands as compared to its average daily volume of 6.2 million shares. The stock ranged in a price between $7.50-$7.67 after having opened the day at $7.56 as compared to the previous trading day's close of $7.43. Other companies within the Metals & Mining industry that increased today were:
Kobex Minerals (
KXM), up 7.2%,
Minco Gold Corporation (
MGH), up 5.4%,
Alderon Iron Ore (
AXX), up 4.7%, and
Rare Element Resources (
REE), up 4.5%.
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Gerdau S.A. engages in the production and commercialization of steel products worldwide. Gerdau has a market cap of $12.66 billion and is part of the basic materials sector. The company has a P/E ratio of 6.1, below the S&P 500 P/E ratio of 17.7. Shares are down 17.4% year to date as of the close of trading on Monday. Currently there are three analysts that rate Gerdau a buy, no analysts rate it a sell, and one rates it a hold.
TheStreet Ratings rates Gerdau as a
hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
On the negative front,
Prospect Global Resources (
PGRX), down 8.7%,
Timberline Resources Corporation (
TLR), down 8.2%,
Vista Gold Corporation (
VGZ), down 7.7%, and
AuRico Gold (
AUQ), down 7.7%, were all laggards within the metals & mining industry with
Eldorado Gold (
EGO) 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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