Gerdau SA (GGB): Today's Featured Metals & Mining Laggard

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.

Gerdau ( GGB) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day up 1.0%. By the end of trading, Gerdau fell $0.16 (-2.5%) to $6.17 on average volume. Throughout the day, 5,676,722 shares of Gerdau exchanged hands as compared to its average daily volume of 5,487,700 shares. The stock ranged in price between $6.14-$6.31 after having opened the day at $6.29 as compared to the previous trading day's close of $6.33. Other companies within the Metals & Mining industry that declined today were: James River Coal Company ( JRCC), down 12.9%, North American Palladium ( PAL), down 12.3%, Alpha Natural Resources ( ANR), down 6.3% and Walter Energy ( WLT), down 6.2%.

Gerdau S.A. produces and commercializes steel products worldwide. Gerdau has a market cap of $10.7 billion and is part of the basic materials sector. Shares are down 19.3% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate Gerdau a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Gerdau as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself.

On the positive front, Uranium Energy Corporation ( UEC), up 16.5%, Quest Rare Minerals ( QRM), up 10.4%, Ur-Energy ( URG), up 7.4% and Energy Fuels ( UUUU), up 7.4% , were all gainers within the metals & mining industry with Freeport-McMoRan Copper & Gold ( FCX) being today's featured metals & mining industry leader.

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).

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

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