NEW YORK (TheStreet) -- Shares of Eldorado Gold (EGO) - Get Report finished the day in the green, up by 10.19% to $3.19 on Thursday afternoon, as some mining and related stocks got a boost from the rise in gold prices.
The price of the precious metal is climbing off of a weaker dollar and in anticipation of a speech by Fed chairperson Janet Yellen today at 5 p.m. at the University of Massachusetts in Amherst, in which she is expected to give clues as to the timing of an interest rate increase, the Wall Street Journal reports.
Gold for December delivery is advancing by 1.83% to $1,152.20 per ounce on the COMEX this afternoon.
As the dollar weakens, assets and commodities priced in the greenback can become less expensive to those that hold other currencies.
"Dollar vulnerability has translated to the gold bulls regaining momentum, with the next relevant resistance...at $1,145 an ounce still in play," Lukman Otunuga, a research analyst at FXTM, said in a note," the Journal added.
Separately, TheStreet Ratings team rates ELDORADO GOLD CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ELDORADO GOLD CORP (EGO) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself. "
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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 627.7% when compared to the same quarter one year ago, falling from $37.63 million to -$198.60 million.
- Net operating cash flow has decreased to $53.93 million or 14.16% 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.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 59.74%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 660.00% compared to the year-earlier 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.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, ELDORADO GOLD CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- ELDORADO GOLD CORP 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. 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, ELDORADO GOLD CORP turned its bottom line around by earning $0.14 versus -$0.91 in the prior year.
- You can view the full analysis from the report here: EGO