U.S. gold futures for June delivery were up 1.8% to $1,205 an ounce on the Comex early Wednesday afternoon.
Gold prices were rising Wednesday as the dollar retreated, falling 0.1% against a basket of currencies, following a downbeat U.S. jobs report, according to Reuters. Weaker ADP private jobs data raised concerns that the U.S. jobs report on Friday could point to worsening conditions in the labor market, according to the news service.
"There is so much discord in the U.S. data that is difficult to find what exactly the next report is going to be," ING Bank senior strategist Hamza Khan told Reuters. Khan added that the uncertainty can push investors to "safe-haven assets" such as gold.
TheStreet Ratings team rates GOLDCORP INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOLDCORP INC (GG) a SELL. This is driven by a number of negative factors, 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 120.0% when compared to the same quarter one year ago, falling from -$1,089.00 million to -$2,396.00 million.
- The share price of GOLDCORP INC has not done very well: it is down 24.30% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Net operating cash flow has decreased to $274.00 million or 10.74% when compared to the same quarter last year. Despite a decrease in cash flow GOLDCORP INC is still fairing well by exceeding its industry average cash flow growth rate of -45.85%.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market, GOLDCORP INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 18.7%. Since the same quarter one year prior, revenues fell by 13.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: GG Ratings Report