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 1.3%. By the end of trading, Vale rose $0.19 (1.1%) to $17.09 on light volume. Throughout the day, 12,337,842 shares of Vale exchanged hands as compared to its average daily volume of 18,918,600 shares. The stock ranged in a price between $16.56-$17.09 after having opened the day at $16.72 as compared to the previous trading day's close of $16.90. Other companies within the Metals & Mining industry that increased today were: Crosshair Energy ( CXZ), up 22.4%, Quest Rare Minerals ( QRM), up 19.4%, Prospect Global Resources ( PGRX), up 14.8% and Quaterra Resources ( QMM), up 14.2%.
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Vale S.A. engages in the research, production, and marketing of iron ore and pellets, nickel, fertilizers, copper, coal, manganese, ferroalloys, cobalt, platinum group metals, and precious metals in Brazil and internationally. Vale has a market cap of $91.5 billion and is part of the basic materials sector. The company has a P/E ratio of 15.9, below the S&P 500 P/E ratio of 17.7. Shares are down 20.3% year to date as of the close of trading on Monday.

TheStreet Ratings rates Vale as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow.

On the negative front, Great Basin Gold ( GBG), down 13.7%, Allied Nevada Gold ( ANV), down 9.6%, China Gengsheng Minerals ( CHGS), down 8.7% and Kimber Resources ( KBX), down 6.8%.

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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