3 Metals & Mining Stocks Pushing The Industry Higher

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 11 points (0.1%) at 17,078 as of Wednesday, Sept. 3, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,398 issues advancing vs. 1,669 declining with 141 unchanged.

The Metals & Mining industry as a whole closed the day down 0.1% versus the S&P 500, which was down 0.1%. Top gainers within the Metals & Mining industry included Pacific Booker Minerals ( PBM), up 7.9%, Entree Gold ( EGI), up 3.1%, China Gerui Advanced Materials Group ( CHOP), up 1.7%, Solitario Exploration & Royalty ( XPL), up 2.1% and Mines Management ( MGN), up 2.6%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Solitario Exploration & Royalty ( XPL) is one of the companies that pushed the Metals & Mining industry higher today. Solitario Exploration & Royalty was up $0.03 (2.1%) to $1.45 on heavy volume. Throughout the day, 55,389 shares of Solitario Exploration & Royalty exchanged hands as compared to its average daily volume of 29,600 shares. The stock ranged in a price between $1.40-$1.49 after having opened the day at $1.46 as compared to the previous trading day's close of $1.42.

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 $58.9 million and is part of the basic materials sector. Shares are up 67.1% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Solitario Exploration & Royalty a buy, no analysts rate it a sell, and none rate it a hold.

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

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

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

At the close, China Gerui Advanced Materials Group ( CHOP) was up $0.01 (1.7%) to $0.61 on heavy volume. Throughout the day, 235,653 shares of China Gerui Advanced Materials Group exchanged hands as compared to its average daily volume of 64,400 shares. The stock ranged in a price between $0.58-$0.62 after having opened the day at $0.60 as compared to the previous trading day's close of $0.60.

China Gerui Advanced Materials Group Limited operates as a contract manufacturer of cold-rolled narrow strip steel products in the People's Republic of China and internationally. The company converts steel manufactured by third parties into thin steel sheets and strips. China Gerui Advanced Materials Group has a market cap of $32.6 million and is part of the basic materials sector. Shares are down 52.0% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate China Gerui Advanced Materials Group a buy, no analysts rate it a sell, and none rate it a hold.

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

TheStreet Ratings rates China Gerui Advanced Materials Group as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on CHOP go as follows:

  • CHINA GERUI ADV MATERIALS GP's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, CHINA GERUI ADV MATERIALS GP swung to a loss, reporting -$0.23 versus $0.45 in the prior year.
  • 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 4304.2% when compared to the same quarter one year ago, falling from -$0.10 million to -$4.18 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, CHINA GERUI ADV MATERIALS GP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for CHINA GERUI ADV MATERIALS GP is currently extremely low, coming in at 8.19%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -15.82% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $2.22 million or 43.77% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here: China Gerui Advanced Materials 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.

Entree Gold ( EGI) was another company that pushed the Metals & Mining industry higher today. Entree Gold was up $0.01 (3.1%) to $0.28 on average volume. Throughout the day, 57,609 shares of Entree Gold exchanged hands as compared to its average daily volume of 66,100 shares. The stock ranged in a price between $0.25-$0.29 after having opened the day at $0.26 as compared to the previous trading day's close of $0.27.

Entree Gold has a market cap of $41.4 million and is part of the basic materials sector. Shares are up 0.7% year-to-date as of the close of trading on Tuesday.

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.

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