3 Stocks Pushing The Metals & Mining Industry Lower

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.

The Metals & Mining industry as a whole closed the day down 1.1% versus the S&P 500, which was up 0.3%. Laggards within the Metals & Mining industry included Sutor Technology Group ( SUTR), down 3.0%, Solitario Exploration & Royalty ( XPL), down 2.0%, Alderon Iron Ore ( AXX), down 10.5%, China Gerui Advanced Materials Group ( CHOP), down 3.7% and Northern Dynasty Minerals ( NAK), down 4.7%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Alderon Iron Ore ( AXX) is one of the companies that pushed the Metals & Mining industry lower today. Alderon Iron Ore was down $0.13 (10.5%) to $1.11 on heavy volume. Throughout the day, 151,993 shares of Alderon Iron Ore exchanged hands as compared to its average daily volume of 43,700 shares. The stock ranged in price between $1.11-$1.18 after having opened the day at $1.18 as compared to the previous trading day's close of $1.24.

Alderon Iron Ore has a market cap of $158.8 million and is part of the basic materials sector. Shares are down 21.0% year-to-date as of the close of trading on Wednesday. Currently there are 3 analysts who rate Alderon Iron Ore a buy, no analysts rate it a sell, and none rate it a hold.

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At the close, Solitario Exploration & Royalty ( XPL) was down $0.03 (2.0%) to $1.49 on average volume. Throughout the day, 33,745 shares of Solitario Exploration & Royalty exchanged hands as compared to its average daily volume of 29,500 shares. The stock ranged in price between $1.40-$1.56 after having opened the day at $1.45 as compared to the previous trading day's close of $1.52.

Solitario Exploration & Royalty Corp., a development stage company, acquires and explores for precious and base metal properties in Peru, Brazil, and Mexico. It primarily explores for gold, silver, platinum, palladium, copper, lead, and zinc metals. Solitario Exploration & Royalty has a market cap of $58.1 million and is part of the basic materials sector. Shares are up 78.8% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Solitario Exploration & Royalty a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Solitario Exploration & Royalty as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from TheStreet Ratings analysis on XPL go as follows:

  • The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, SOLITARIO EXPLORATION & RLTY's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Metals & Mining industry average, but is greater than that of the S&P 500. The net income increased by 46.3% when compared to the same quarter one year prior, rising from -$0.99 million to -$0.53 million.
  • SOLITARIO EXPLORATION & RLTY reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SOLITARIO EXPLORATION & RLTY continued to lose money by earning -$0.06 versus -$0.10 in the prior year. For the next year, the market is expecting a contraction of 33.3% in earnings (-$0.08 versus -$0.06).
  • This stock has increased by 57.29% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in XPL do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

You can view the full analysis from the report here: Solitario Exploration & Royalty Ratings Report

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Sutor Technology Group ( SUTR) was another company that pushed the Metals & Mining industry lower today. Sutor Technology Group was down $0.02 (3.0%) to $0.73 on heavy volume. Throughout the day, 313,186 shares of Sutor Technology Group exchanged hands as compared to its average daily volume of 50,500 shares. The stock ranged in price between $0.71-$0.75 after having opened the day at $0.74 as compared to the previous trading day's close of $0.75.

Sutor Technology Group Limited, through its subsidiaries, manufactures and sells finished steel products in the People's Republic of China. Sutor Technology Group has a market cap of $35.4 million and is part of the basic materials sector. Shares are down 58.9% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Sutor Technology Group as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself.

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Highlights from TheStreet Ratings analysis on SUTR go as follows:

  • Net operating cash flow has significantly increased by 196.77% to $16.29 million when compared to the same quarter last year. In addition, SUTOR TECHNOLOGY GROUP LTD has also vastly surpassed the industry average cash flow growth rate of -23.48%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, SUTOR TECHNOLOGY GROUP LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for SUTOR TECHNOLOGY GROUP LTD is currently extremely low, coming in at 9.97%. Regardless of SUTR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SUTR's net profit margin of 1.15% is significantly lower than the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 71.3% when compared to the same quarter one year ago, falling from $3.88 million to $1.11 million.

You can view the full analysis from the report here: Sutor Technology Group Ratings Report

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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