Declines From Peabody Energy Corporation (BTU) Drive Down Metals & Mining Industry

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.

Peabody Energy Corporation ( BTU) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day up 1.2%. By the end of trading, Peabody Energy Corporation fell 38 cents (-1.9%) to $19.77 on average volume. Throughout the day, 7.1 million shares of Peabody Energy Corporation exchanged hands as compared to its average daily volume of 7.2 million shares. The stock ranged in price between $19.55-$20.15 after having opened the day at $20.08 as compared to the previous trading day's close of $20.15. Other companies within the Metals & Mining industry that declined today were: China Gerui Advanced Materials Group ( CHOP), down 9.5%, Crosshair Energy ( CXZ), down 8.9%, Cardero Resources Corporation ( CDY), down 7%, and Tasman Metals ( TAS), down 6.9%.
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Peabody Energy Corporation engages in the mining of coal. The company operates through Western U.S. Mining, Midwestern U.S. Mining, Australian Mining, Trading and Brokerage, and Corporate and Other segments. Peabody Energy Corporation has a market cap of $5.37 billion and is part of the basic materials sector. Shares are down 24.3% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Peabody Energy Corporation a buy, two analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Peabody Energy Corporation as a hold. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

On the positive front, China Gengsheng Minerals ( CHGS), up 12%, Timberline Resources Corporation ( TLR), up 11.8%, Tahoe Resources ( TAHO), up 10.7%, and Seabridge Gold ( SA), up 9.4%, were all gainers within the metals & mining industry with Goldcorp ( GG) being today's featured metals & mining industry leader.

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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