3 Stocks Underperforming Today In The 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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 62 points (-0.4%) at 15,060 as of Wednesday, June 12, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 760 issues advancing vs. 2,254 declining with 88 unchanged.

The Metals & Mining industry currently sits up 0.4% versus the S&P 500, which is down 0.61.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Gerdau ( GGB) is one of the companies pushing the Metals & Mining industry lower today. As of noon trading, Gerdau is down $0.14 (-2.4%) to $5.62 on average volume Thus far, 2.4 million shares of Gerdau exchanged hands as compared to its average daily volume of 5.2 million shares. The stock has ranged in price between $5.62-$5.79 after having opened the day at $5.78 as compared to the previous trading day's close of $5.76.

Gerdau S.A. engages in the production and commercialization of steel products worldwide. Gerdau has a market cap of $10.1 billion and is part of the basic materials sector. The company has a P/E ratio of 4.9, below the S&P 500 P/E ratio of 17.7. Shares are down 35.9% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate Gerdau a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Gerdau as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. 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 poor profit margins. Get the full Gerdau Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, Tenaris ( TS) is down $0.31 (-0.8%) to $41.03 on light volume Thus far, 204,513 shares of Tenaris exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $40.99-$41.77 after having opened the day at $41.69 as compared to the previous trading day's close of $41.34.

Tenaris S.A., through its subsidiaries, engages in the steel pipe manufacturing and distribution activities. Tenaris has a market cap of $24.9 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 1.4% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate Tenaris a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Tenaris as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Tenaris Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, ArcelorMittal ( MT) is down $0.23 (-1.9%) to $11.86 on average volume Thus far, 4.3 million shares of ArcelorMittal exchanged hands as compared to its average daily volume of 7.0 million shares. The stock has ranged in price between $11.85-$12.11 after having opened the day at $12.06 as compared to the previous trading day's close of $12.09.

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 $19.4 billion and is part of the basic materials sector. Shares are down 30.8% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate ArcelorMittal a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates ArcelorMittal 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. Get the full ArcelorMittal Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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