Iamgold Corp (IAG): 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.

Iamgold ( IAG) 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, Iamgold fell 21 cents (-1.3%) to $16.24 on light volume. Throughout the day, 2.1 million shares of Iamgold exchanged hands as compared to its average daily volume of three million shares. The stock ranged in price between $16-$16.35 after having opened the day at $16.16 as compared to the previous trading day's close of $16.45. Other companies within the Metals & Mining industry that declined today were: Pacific Booker Minerals ( PBM), down 6.1%, Primero Mining ( PPP), down 5.3%, Minco Gold Corporation ( MGH), down 5.3%, and Golden Star Resources ( GSS), down 5%.
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IAMGOLD Corporation, a mid-tier gold mining company, engages in the exploration, development, and production of mineral resource properties. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. Iamgold has a market cap of $6.16 billion and is part of the basic materials sector. The company has a P/E ratio of 17.2, below the average metals & mining industry P/E ratio of 17.8 and below the S&P 500 P/E ratio of 17.7. Shares are up 3.3% year to date as of the close of trading on Friday. Currently there are eight analysts that rate Iamgold a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Iamgold as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Timberline Resources Corporation ( TLR), up 11.5%, Cliffs Natural Resources ( CLF), up 5.8%, Walter Energy ( WLT), up 5.1%, and AK Steel Holding Corporation ( AKS), up 4.7%, were all gainers within the metals & mining industry with Vale ( VALE) 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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