3 Metals & Mining Stocks Driving 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 traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 18 points (0.1%) at 17,652 as of Monday, Nov. 17, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,424 issues advancing vs. 1,602 declining with 148 unchanged.

The Metals & Mining industry as a whole closed the day up 1.1% versus the S&P 500, which was up 0.1%. Top gainers within the Metals & Mining industry included Entree Gold ( EGI), up 3.4%, China Gerui Advanced Materials Group ( CHOP), up 22.6%, Mines Management ( MGN), up 3.8%, Silver Bull Resources ( SVBL), up 4.7% and Ossen Innovation ( OSN), up 7.0%.

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

Mines Management ( MGN) is one of the companies that pushed the Metals & Mining industry higher today. Mines Management was up $0.02 (3.8%) to $0.55 on light volume. Throughout the day, 22,332 shares of Mines Management exchanged hands as compared to its average daily volume of 41,000 shares. The stock ranged in a price between $0.53-$0.55 after having opened the day at $0.55 as compared to the previous trading day's close of $0.53.

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 $16.3 million and is part of the basic materials sector. Shares are down 8.5% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Mines Management 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 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.
  • In its most recent trading session, MGN has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. This company's share value has not moved any higher or lower since its value 12 months ago, and we feel the risks associated with investing in this company will outweigh any potential future gains.
  • MINES MANAGEMENT INC reported flat earnings per share in the most recent quarter. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, MINES MANAGEMENT INC continued to lose money by earning -$0.25 versus -$0.28 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income increased by 0.8% when compared to the same quarter one year prior, going from -$1.84 million to -$1.82 million.
  • Net operating cash flow has increased to -$1.42 million or 17.52% when compared to the same quarter last year. In addition, MINES MANAGEMENT INC has also vastly surpassed the industry average cash flow growth rate of -55.48%.

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 up $0.40 (22.6%) to $2.17 on heavy volume. Throughout the day, 84,805 shares of China Gerui Advanced Materials Group exchanged hands as compared to its average daily volume of 11,400 shares. The stock ranged in a price between $1.79-$2.69 after having opened the day at $1.79 as compared to the previous trading day's close of $1.77.

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 $10.2 million and is part of the basic materials sector. Shares are down 86.2% year-to-date as of the close of trading on Friday. 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, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CHOP go as follows:

  • CHINA GERUI ADV MATERIALS GP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. 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 -$2.30 versus $4.50 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 61.9% when compared to the same quarter one year ago, falling from -$0.85 million to -$1.37 million.
  • The gross profit margin for CHINA GERUI ADV MATERIALS GP is currently extremely low, coming in at 14.97%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -4.18% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$228.80 million or 766.69% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 87.17%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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 (3.4%) to $0.21 on light volume. Throughout the day, 10,745 shares of Entree Gold exchanged hands as compared to its average daily volume of 56,200 shares. The stock ranged in a price between $0.20-$0.22 after having opened the day at $0.21 as compared to the previous trading day's close of $0.20.

Entree Gold has a market cap of $32.0 million and is part of the basic materials sector. Shares are down 28.6% year-to-date as of the close of trading on Friday.

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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