Declines From ArcelorMittal SA (MT) 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.

ArcelorMittal ( MT) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day up 0.3%. By the end of trading, ArcelorMittal fell 19 cents (-1.5%) to $12.13 on average volume. Throughout the day, 8.7 million shares of ArcelorMittal exchanged hands as compared to its average daily volume of 10.2 million shares. The stock ranged in price between $11.87-$12.15 after having opened the day at $11.91 as compared to the previous trading day's close of $12.32. Other companies within the Metals & Mining industry that declined today were: Timberline Resources Corporation ( TLR), down 13.2%, Prospect Global Resources ( PGRX), down 12.1%, Allied Nevada Gold ( ANV), down 9.3%, and Quaterra Resources ( QMM), down 7.3%.
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ArcelorMittal, together with its subsidiaries, operates as an integrated steel and mining company worldwide. The company operates through six segments: Flat Carbon Americas; Flat Carbon Europe; Long Carbon Americas and Europe; Asia, Africa, and CIS; Distribution Solutions; and Mining. ArcelorMittal has a market cap of $19.32 billion and is part of the basic materials sector. Shares are down 29.5% year to date as of the close of trading on Thursday. Currently there are three analysts that rate ArcelorMittal a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates ArcelorMittal as a hold. Among the primary strengths of the company is its generally strong cash flow from operations. 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 Gerui Advanced Materials Group ( CHOP), up 8.6%, Avino Silver & Gold Mines ( ASM), up 6.7%, Hallador Energy ( HNRG), up 6.4%, and MAG Silver Corporation ( MVG), up 6%, were all gainers within the metals & mining industry with Consol Energy ( CNX) 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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