Eldorado Gold Corp (EGO): Today's Featured Basic Materials 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.

Eldorado Gold ( EGO) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 1.6%. By the end of trading, Eldorado Gold rose 15 cents (1.1%) to $14.34 on average volume. Throughout the day, 3.5 million shares of Eldorado Gold exchanged hands as compared to its average daily volume of 4.3 million shares. The stock ranged in a price between $13.99-$14.50 after having opened the day at $14.09 as compared to the previous trading day's close of $14.19. Other companies within the Basic Materials sector that increased today were: Gulf Resources ( GURE), up 13.3%, Recon Technology ( RCON), up 6.8%, Entree Gold ( EGI), up 6.8%, and Ivanhoe Energy ( IVAN), up 5.8%.
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Eldorado Gold Corporation, together with its subsidiaries, engages in the exploration, development, mining, and production of gold properties in Brazil, China, Greece, and Turkey. Eldorado Gold has a market cap of $10.57 billion and is part of the metals & mining industry. The company has a P/E ratio of 28.5, above the average metals & mining industry P/E ratio of 28 and above the S&P 500 P/E ratio of 17.7. Shares are up 3.5% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Eldorado Gold a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Eldorado 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, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, GeoPetro Resources Company ( GPR), down 18.9%, VOC Energy ( VOC), down 16.4%, United States Antimony Corporation ( UAMY), down 12.3%, and Minco Gold Corporation ( MGH), down 9.4%, were all laggards within the basic materials sector with ConocoPhillips ( COP) being today's basic materials sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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