Yamana Gold Inc (AUY): 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.

Yamana Gold ( AUY) pushed the Metals & Mining industry higher today making it today's featured metals & mining winner. The industry as a whole closed the day down 0.4%. By the end of trading, Yamana Gold rose 31 cents (1.7%) to $18.77 on average volume. Throughout the day, 7.3 million shares of Yamana Gold exchanged hands as compared to its average daily volume of 5.9 million shares. The stock ranged in a price between $18.35-$18.97 after having opened the day at $18.43 as compared to the previous trading day's close of $18.46. Other companies within the Metals & Mining industry that increased today were: AuRico Gold ( AUQ), up 20.6%, Keegan Resources ( KGN), up 16%, Polymet Mining ( PLM), up 5.5%, and Sutor Technology Group ( SUTR), up 4.7%.
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Yamana Gold Inc. engages in the exploration, development, and production of mineral properties, primarily gold. It also explores for copper, molybdenum, zinc, and silver metals. Yamana Gold has a market cap of $14.24 billion and is part of the basic materials sector. The company has a P/E ratio of 33.9, above the average metals & mining industry P/E ratio of 33.3 and above the S&P 500 P/E ratio of 17.7. Shares are up 25.7% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Yamana Gold a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Yamana Gold as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Mines Management ( MGN), down 7.6%, China Precision Steel ( CPSL), down 6.8%, Ossen Innovation ( OSN), down 6.3%, and Universal Stainless & Alloy Products ( USAP), down 6.2%, were all laggards within the metals & mining industry with Alcoa ( AA) 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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