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 down 0.1%. By the end of trading, Vale rose $0.27 (2.0%) to $13.86 on average volume. Throughout the day, 19,893,266 shares of Vale exchanged hands as compared to its average daily volume of 22,080,700 shares. The stock ranged in a price between $13.58-$14.05 after having opened the day at $13.71 as compared to the previous trading day's close of $13.59. Other companies within the Basic Materials sector that increased today were: Magellan Petroleum ( MPET), up 10.8%, Synergy Resources ( SYRG), up 7.6%, Solitario Exploration & Royalty ( XPL), up 7.3% and Clayton Williams Energy ( CWEI), up 7.3%.

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 $73.4 billion and is part of the metals & mining industry. Shares are down 10.9% year to date as of the close of trading on Wednesday. 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, Eagle Rock Energy Partners ( EROC), down 16.9%, Ikonics ( IKNX), down 10.4%, Core Laboratories ( CLB), down 9.2% and MagneGas ( MNGA), down 6.7% , were all laggards within the basic materials sector with Williams Companies ( WMB) 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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you liked this article you might like

Hit the 'Mother Lode' With Vale ADRs