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 0.8%. By the end of trading, Vale rose $0.15 (1.0%) to $14.70 on light volume. Throughout the day, 13,512,640 shares of Vale exchanged hands as compared to its average daily volume of 19,030,900 shares. The stock ranged in a price between $14.34-$14.74 after having opened the day at $14.49 as compared to the previous trading day's close of $14.55. Other companies within the Metals & Mining industry that increased today were: Midway Gold ( MDW), up 10.2%, Banro Corporation ( BAA), up 9.1%, James River Coal Company ( JRCC), up 7.5% and Quaterra Resources ( QMM), up 6.3%.
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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 $77.4 billion and is part of the basic materials sector. The company has a P/E ratio of 14.0, below the S&P 500 P/E ratio of 17.7. Shares are down 30.6% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Vale a buy, 2 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Vale as a hold. 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 and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and feeble growth in the company's earnings per share.

On the negative front, Kimber Resources ( KBX), down 12.5%, Great Basin Gold ( GBG), down 11.6%, USEC ( USU), down 8.3% and Tasman Metals ( TAS), down 7.0%.

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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