Tenaris SA (TS): Today's Highlighted Performer In Metals & Mining

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 closed the day down 2.9%. By the end of trading, Tenaris rose 46 cents (1.1%) to $40.63 on light volume. Throughout the day, 901,758 shares of Tenaris exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in a price between $40.47-$40.95 after having opened the day at $40.75 as compared to the previous trading day's close of $40.17. Other companies within the Metals & Mining industry that increased today were: Molycorp ( MCP), up 6.7%, USEC ( USU), up 5.5%, Prospect Global Resources ( PGRX), up 4.4%, and Sterlite Industries (India ( SLT), up 4.1%.
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Tenaris S.A., through its subsidiaries, engages in the steel pipe manufacturing and distribution activities. Tenaris has a market cap of $24.07 billion and is part of the basic materials sector. The company has a P/E ratio of 36.1, above the S&P 500 P/E ratio of 17.7. Shares are down 4.2% year to date as of the close of trading on Monday. Currently there are three analysts that rate Tenaris a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Tenaris as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Crosshair Energy ( CXZ), down 12%, Allied Nevada Gold ( ANV), down 11.3%, China Gerui Advanced Materials Group ( CHOP), down 10.1%, and Rubicon Minerals ( RBY), down 9.9%, were all laggards within the metals & mining industry with Freeport-McMoRan Copper & Gold ( FCX) 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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