TheStreet's Rhonda Schaffler discusses why Yamana Gold stock is rising today.
For April delivery, gold is up 1.14% to $1,234.30 per ounce on the COMEX this afternoon.
The price of the yellow metal is getting a lift from a softer dollar and lower shares as volatility in wider markets increased safe-haven appeal for gold, Reuters reports.
"This has started as a rocky year for global markets and while some countries are moving into negative rates, the outlook for U.S. interest rates hikes is not as positive," Natixis analyst Bernard Dahdah told Reuters.
Gold rose 10% in February, which was its largest monthly gain since January 2012.
Yamana is a gold and copper exploration company, which operates seven mines and oversees several ongoing development projects in Brazil, Argentina and Chile.
"The shares added fractionally to recent gains this week, even though Yamana was downgraded on Wednesday at Goldman Sachs, to Sell from Neutral. The stock has gained 47% year to date, but remains an attractive hedge against the volatility in the broader market," TheStreet's David Peltier wrote in his Stocks Under $10 Weekly Roundupon February 26.
(Yamana is held in David's Stocks Under $10 portfolio. See all of his holdings with a free trial.)
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
This is driven by some concerns, which 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 covered.
The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.
Recently, 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 articles's author.
You can view the full analysis from the report here: AUY