Vale SA (VALE): Today's Featured Metals & Mining Winner

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 0.4%. By the end of trading, Vale rose $0.23 (1.6%) to $14.66 on light volume. Throughout the day, 11,960,770 shares of Vale exchanged hands as compared to its average daily volume of 16,691,700 shares. The stock ranged in a price between $14.46-$14.70 after having opened the day at $14.52 as compared to the previous trading day's close of $14.43. Other companies within the Metals & Mining industry that increased today were: North American Palladium ( PAL), up 15.8%, Avalon Rare Metals ( AVL), up 8.5%, Horsehead Holding Corporation ( ZINC), up 7.8% and PVR Partners ( PVR), up 6.9%.

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 $76.3 billion and is part of the basic materials sector. The company has a P/E ratio of 13.8, below the S&P 500 P/E ratio of 17.7. Shares are down 31.1% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate Vale a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates Vale as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, 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 disappointing return on equity.

On the negative front, Northern Dynasty Minerals ( NAK), down 17.8%, Kingold Jewelry ( KGJI), down 8.9%, Rubicon Minerals ( RBY), down 8.3% and Exeter Resource Corporation ( XRA), down 6.6% , were all laggards within the metals & mining industry with Molycorp ( MCP) being today's metals & mining industry laggard.

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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