Anglogold Ashanti Limited (AU): Today's Featured Metals & Mining Laggard

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.

Anglogold Ashanti ( AU) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day down 0.3%. By the end of trading, Anglogold Ashanti fell $1.13 (-3.2%) to $34.45 on heavy volume. Throughout the day, 3.7 million shares of Anglogold Ashanti exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $34.23-$35.22 after having opened the day at $34.87 as compared to the previous trading day's close of $35.58. Other companies within the Metals & Mining industry that declined today were: Minco Gold Corporation ( MGH), down 10.5%, Solitario Exploration & Royalty ( XPL), down 7%, General Steel Holdings ( GSI), down 6.2%, and Kobex Minerals ( KXM), down 5.8%.
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AngloGold Ashanti Limited primarily engages in the exploration and production of gold. It also produces by-products, such as silver, uranium oxide, and sulfuric acid. Anglogold Ashanti has a market cap of $13.92 billion and is part of the basic materials sector. The company has a P/E ratio of 11.4, below the average metals & mining industry P/E ratio of 13.4 and below the S&P 500 P/E ratio of 17.7. Shares are down 14.5% year to date as of the close of trading on Tuesday. Currently there are two analysts that rate Anglogold Ashanti a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Anglogold Ashanti as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and unimpressive growth in net income.

On the positive front, Gold Reserve ( GRZ), up 9.4%, Golden Star Resources ( GSS), up 6.5%, Avalon Rare Metals ( AVL), up 5.8%, and MAG Silver Corporation ( MVG), up 5.8%, were all gainers within the metals & mining industry with Companhia Siderurgica Nacional ( SID) being today's featured metals & mining industry leader.

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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