Anglogold Ashanti Limited (AU): Today's Featured Basic Materials Loser - TheStreet

Anglogold Ashanti

(

AU

) pushed the Basic Materials sector lower today making it today's featured Basic Materials loser. The sector as a whole closed the day up 0.8%. By the end of trading, Anglogold Ashanti fell 70 cents (-2%) to $34.41 on light volume. Throughout the day, 1.5 million shares of Anglogold Ashanti exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in price between $34.05-$35.11 after having opened the day at $35 as compared to the previous trading day's close of $35.11. Other company's within the Basic Materials sector that declined today were:

GeoMet

(

GMET

), down 29.2%,

Cereplast

(

CERP

), down 25%,

Pure Bioscience

(

PURE

), down 18.6%, and

Recovery Energy

(

RECV

), down 15.7%.

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AngloGold Ashanti Limited primarily engages in the exploration and production of gold. It also produces by-products, such as silver, uranium oxide, and sulfuric acid. Anglogold Ashanti has a market cap of $14.13 billion and is part of the

metals & mining

industry. The company has a P/E ratio of 11.7, equal to the average metals & mining industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 17.3% year to date as of the close of trading on Thursday. Currently there is one analyst that rates Anglogold Ashanti a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Anglogold Ashanti as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

On the positive front,

Harvest Natural Resources

(

HNR

), up 86.9%,

Isramco

(

ISRL

), up 16.7%,

Gastar Exploration

(

GST

), up 15.5%, and

Union Drilling

(

UDRL

), up 12.8%, were all gainers within the basic materials sector with

Apache Corporation

(

APA

) being today's featured basic materials sector winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider

Materials Select Sector SPDR

(

XLB

) while those bearish on the basic materials sector could consider

ProShares Short Basic Materials Fd

(

SBM

).

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