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 0.1%. By the end of trading, Randgold Resources rose $3.78 (3.1%) to $123.86 on heavy volume. Throughout the day, 1.8 million shares of Randgold Resources exchanged hands as compared to its average daily volume of 523,100 shares. The stock ranged in a price between $120.93-$124.80 after having opened the day at $121.06 as compared to the previous trading day's close of $120.08. Other companies within the Metals & Mining industry that increased today were: Prospect Global Resources ( PGRX), up 13.3%, USEC ( USU), up 13.1%, Gold Resource ( GORO), up 7.6%, and International Tower Hill Mines ( THM), up 7.3%.
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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 $11.17 billion and is part of the basic materials sector. The company has a P/E ratio of 26.2, equal to the average metals & mining industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 19% year to date as of the close of trading on Thursday. Currently there are three analysts that rate Randgold Resources a buy, one analyst rates it a sell, and five 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, Vista Gold Corporation ( VGZ), down 10.9%, Avalon Rare Metals ( AVL), down 8.3%, Tasman Metals ( TAS), down 8.2%, and Uranerz Energy Corporation ( URZ), down 8%, were all laggards within the metals & mining industry with ArcelorMittal ( MT) 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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