Vale SA (VALE): Today's Featured Basic Materials 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 Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 1.0%. By the end of trading, Vale rose $0.55 (4.0%) to $14.34 on average volume. Throughout the day, 26,901,004 shares of Vale exchanged hands as compared to its average daily volume of 21,504,000 shares. The stock ranged in a price between $13.76-$14.48 after having opened the day at $13.76 as compared to the previous trading day's close of $13.79. Other companies within the Basic Materials sector that increased today were: James River Coal Company ( JRCC), up 20.5%, Solitario Exploration & Royalty ( XPL), up 15.3%, Mines Management ( MGN), up 14.7% and Revett Mining Company ( RVM), up 11.4%.

Vale S.A. is engaged in the research, production, and sale of iron ore and pellets, nickel, fertilizer, copper, coal, manganese, ferroalloys, cobalt, platinum group metals, and precious metals. Vale has a market cap of $74.2 billion and is part of the metals & mining industry. Shares are down 9.6% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Vale a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Vale as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins 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, deteriorating net income and disappointing return on equity.

On the negative front, Samson Oil & Gas ( SSN), down 10.0%, Amyris ( AMRS), down 9.2%, Energy Fuels ( UUUU), down 4.7% and Double Eagle Petroleum Company ( DBLE), down 4.6% , were all laggards within the basic materials sector with Plains All American Pipeline ( PAA) being today's basic materials sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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