Randgold Resources Ltd. (GOLD): Today's Featured Metals & Mining Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Randgold Resources ( GOLD) pushed the Metals & Mining industry higher today making it today's featured metals & mining winner. The industry as a whole closed the day down 0.6%. By the end of trading, Randgold Resources rose $1.71 (1.7%) to $100.53 on average volume. Throughout the day, 605,095 shares of Randgold Resources exchanged hands as compared to its average daily volume of 687,500 shares. The stock ranged in a price between $99.84-$102.25 after having opened the day at $100.90 as compared to the previous trading day's close of $98.82. Other companies within the Metals & Mining industry that increased today were: Avino Silver & Gold Mines ( ASM), up 11.6%, Keegan Resources ( KGN), up 10.9%, Solitario Exploration & Royalty ( XPL), up 10.2%, and Entree Gold ( EGI), up 8.9%.

Randgold Resources Limited, together with its subsidiaries, engages in the exploration and mining of gold deposits in west and central Africa. Randgold Resources has a market cap of $9.02 billion and is part of the basic materials sector. The company has a P/E ratio of 21, below the average metals & mining industry P/E ratio of 21.4 and above the S&P 500 P/E ratio of 17.7. Shares are down 3.2% year to date as of the close of trading on Wednesday. Currently there are four analysts that rate Randgold Resources a buy, one analyst rates it a sell, and four rate it a hold.

TheStreet Ratings rates Randgold Resources as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Sandstorm Gold ( SAND), down 11.6%, China Natural Resources ( CHNR), down 9.9%, China Gengsheng Minerals ( CHGS), down 9%, and Alpha Natural Resources ( ANR), down 7.4%, were all laggards within the metals & mining industry with United States Steel Corporation ( X) being today's metals & mining industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the metals & mining industry could consider SPDR S&P Metals & Mining ETF ( XME) while those bearish on the metals & mining industry could consider PowerShares DB Base Metals Sht ETN ( BOS).
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