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 4.2%. By the end of trading, Vale rose $0.40 (2.6%) to $16.01 on average volume. Throughout the day, 15,142,257 shares of Vale exchanged hands as compared to its average daily volume of 19,216,800 shares. The stock ranged in a price between $15.48-$16.05 after having opened the day at $15.58 as compared to the previous trading day's close of $15.61. Other companies within the Metals & Mining industry that increased today were: Cardero Resources Corporation ( CDY), up 30.8%, North American Palladium ( PAL), up 20.9%, McEwen Mining ( MUX), up 18.9% and Pretium Resources ( PVG), up 16.8%.
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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 $80.3 billion and is part of the basic materials sector. The company has a P/E ratio of 14.6, below the S&P 500 P/E ratio of 17.7. Shares are down 25.5% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Vale a buy, 2 analysts rate it a sell, and 6 rate it a hold.

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, China Gengsheng Minerals ( CHGS), down 10.5%, Kimber Resources ( KBX), down 7.1%, Jaguar Mining ( JAG), down 4.4% and Kobex Minerals ( KXM), down 4.3%.

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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