Goldcorp (GG) Stock Down on Lower Gold Prices

Goldcorp (GG) stock is declining this afternoon alongside gold prices.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of Goldcorp (GG) are sliding 1.08% to $19.24 in late-afternoon trading on Friday as lower gold prices weigh on the Canadian gold producer.

Gold for August delivery is down 0.28% to $1,328.50 per ounce on the COMEX this afternoon.

The precious metal is being negatively impacted by a stronger dollar, which makes commodities priced in the greenback more expensive to foreign buyers.

Additionally, investors continue to favor riskier assets over safe havens like gold as concerns about Britain's recent decision to leave the European Union fade. 

But financial markets remain somewhat volatile, which is a long-term positive for the commodity, FXTM research analyst Lukman Otunuga told the Wall Street Journal. 

"Uncertainty remains a recurrent theme in the financial markets and such should bolster gold's allure in the longer term," Otunuga said.

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C-.

Goldcorp's strengths such as its solid stock price performance, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

You can view the full analysis from the report here: GG

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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