3 Stocks Advancing The Metals & Mining Industry

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 7 points (0.0%) at 17,673 as of Wednesday, Feb. 4, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,090 issues advancing vs. 2,000 declining with 134 unchanged.

The Metals & Mining industry as a whole was unchanged today versus the S&P 500, which was down 0.4%. Top gainers within the Metals & Mining industry included Alderon Iron Ore ( AXX), up 2.6%, Entree Gold ( EGI), up 2.7%, Atlatsa Resources ( ATL), up 5.6%, China Gerui Advanced Materials Group ( CHOP), up 6.5% and Timberline Resources ( TLR), up 1.7%.

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

Atlatsa Resources ( ATL) is one of the companies that pushed the Metals & Mining industry higher today. Atlatsa Resources was up $0.01 (5.6%) to $0.19 on light volume. Throughout the day, 62,491 shares of Atlatsa Resources exchanged hands as compared to its average daily volume of 93,700 shares. The stock ranged in a price between $0.18-$0.19 after having opened the day at $0.18 as compared to the previous trading day's close of $0.18.

Atlatsa Resources Corporation mines, explores for, and develops platinum group metals properties in South Africa. The company primarily explores for platinum, palladium, rhodium, gold, copper, and nickel. Atlatsa Resources has a market cap of $103.9 million and is part of the basic materials sector. Shares are up 2.5% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Atlatsa Resources a buy, 1 analyst rates it a sell, and none rate it a hold.

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TheStreet Ratings rates Atlatsa Resources as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on ATL go as follows:

  • Compared to other companies in the Metals & Mining industry and the overall market, ATLATSA RESOURCES CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 29.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ATLATSA RESOURCES CORP 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 year. During the past fiscal year, ATLATSA RESOURCES CORP turned its bottom line around by earning $0.47 versus -$0.04 in the prior year.
  • ATL's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 67.28%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The gross profit margin for ATLATSA RESOURCES CORP is rather low; currently it is at 19.10%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, ATL's net profit margin of -0.73% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Atlatsa Resources Ratings Report

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At the close, Entree Gold ( EGI) was up $0.00 (2.7%) to $0.18 on light volume. Throughout the day, 25,400 shares of Entree Gold exchanged hands as compared to its average daily volume of 83,100 shares. The stock ranged in a price between $0.18-$0.18 after having opened the day at $0.18 as compared to the previous trading day's close of $0.18.

Entree Gold has a market cap of $25.4 million and is part of the basic materials sector. Shares are up 5.0% year-to-date as of the close of trading on Tuesday.

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Alderon Iron Ore ( AXX) was another company that pushed the Metals & Mining industry higher today. Alderon Iron Ore was up $0.01 (2.6%) to $0.28 on light volume. Throughout the day, 10,803 shares of Alderon Iron Ore exchanged hands as compared to its average daily volume of 48,500 shares. The stock ranged in a price between $0.28-$0.28 after having opened the day at $0.28 as compared to the previous trading day's close of $0.27.

Alderon Iron Ore has a market cap of $35.8 million and is part of the basic materials sector. Shares are down 20.1% 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.