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 up 1.3%. By the end of trading, Anglogold Ashanti fell 40 cents (-1.2%) to $33.58 on light volume. Throughout the day, one 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 $33.57-$34.04 after having opened the day at $33.83 as compared to the previous trading day's close of $33.98. Other companies within the Metals & Mining industry that declined today were: Barrick Gold Corporation ( ABX), down 9.4%, Uranium Resources ( URRE), down 7.7%, China Shen Zhou Mining & Resources ( SHZ), down 7.7%, and China Gengsheng Minerals ( CHGS), 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 $12.45 billion and is part of the basic materials sector. The company has a P/E ratio of 10.2, below the S&P 500 P/E ratio of 17.7. Shares are down 23.6% year to date as of the close of trading on Wednesday. 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 attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.

On the positive front, RTI International Metals ( RTI), up 10.1%, Thompson Creek Metals Company ( TC), up 9.5%, Walter Energy ( WLT), up 9%, and SilverCrest Mines ( SVLC), up 8.8%, were all gainers within the metals & mining industry with Freeport-McMoRan Copper & Gold ( FCX) 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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