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 1.6% versus the S&P 500, which was down 0.2%. Laggards within the Metals & Mining industry included Entree Gold ( EGI), down 3.0%, Minco Gold ( MGH), down 5.1%, China Gerui Advanced Materials Group ( CHOP), down 20.5%, Mines Management ( MGN), down 5.9% and Gold Standard Ventures ( GSV), down 2.7%.

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

Mines Management ( MGN) is one of the companies that pushed the Metals & Mining industry lower today. Mines Management was down $0.04 (5.9%) to $0.70 on light volume. Throughout the day, 41,624 shares of Mines Management exchanged hands as compared to its average daily volume of 60,900 shares. The stock ranged in price between $0.70-$0.72 after having opened the day at $0.72 as compared to the previous trading day's close of $0.75.

Mines Management, Inc., together with its subsidiaries, acquires, explores, and develops various mineral properties in North and South America. The company explores for silver, and associated base and precious metals. Mines Management has a market cap of $21.6 million and is part of the basic materials sector. Shares are up 24.5% year-to-date as of the close of trading on Wednesday.

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 Mines Management as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on MGN go as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, MINES MANAGEMENT INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • MGN has underperformed the S&P 500 Index, declining 17.05% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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 28.1% when compared to the same quarter one year prior, rising from -$2.15 million to -$1.54 million.
  • MGN, with its decline in revenue, slightly underperformed the industry average of 4.4%. Since the same quarter one year prior, revenues fell by 12.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • MINES MANAGEMENT INC has improved earnings per share by 28.6% 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 year. During the past fiscal year, MINES MANAGEMENT INC continued to lose money by earning -$0.25 versus -$0.28 in the prior year.

You can view the full analysis from the report here: Mines Management 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 down $0.12 (20.5%) to $0.48 on heavy volume. Throughout the day, 671,006 shares of China Gerui Advanced Materials Group exchanged hands as compared to its average daily volume of 62,800 shares. The stock ranged in price between $0.44-$0.54 after having opened the day at $0.53 as compared to the previous trading day's close of $0.61.

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 $35.7 million and is part of the basic materials sector. Shares are down 51.2% year-to-date as of the close of trading on Wednesday.

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 lower today. Entree Gold was down $0.01 (3.0%) to $0.27 on average volume. Throughout the day, 54,055 shares of Entree Gold exchanged hands as compared to its average daily volume of 69,600 shares. The stock ranged in price between $0.26-$0.30 after having opened the day at $0.28 as compared to the previous trading day's close of $0.28.

Entree Gold has a market cap of $39.7 million and is part of the basic materials sector. Shares are down 0.6% year-to-date as of the close of trading on Wednesday.

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

More from Markets

Baidu Stock Plummets After COO Qi Lu Resignation

Baidu Stock Plummets After COO Qi Lu Resignation

Wondering What Blockchain Technology Really Is? This Expert Explains It All

Wondering What Blockchain Technology Really Is? This Expert Explains It All

Dow Rises Sharply as U.S.-China Trade Tensions Thaw

Dow Rises Sharply as U.S.-China Trade Tensions Thaw

GE Confirms $11.1 Billion Transportation Merger With Wabtec

GE Confirms $11.1 Billion Transportation Merger With Wabtec

Gold Prices Look 'Rich' at Current Levels - Here's What Could Change That

Gold Prices Look 'Rich' at Current Levels - Here's What Could Change That