Goldcorp Inc. (GG): Today's Featured Basic Materials 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.

Goldcorp ( GG) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day down 0.3%. By the end of trading, Goldcorp fell 70 cents (-1.6%) to $44.17 on average volume. Throughout the day, 4.3 million shares of Goldcorp exchanged hands as compared to its average daily volume of 4.9 million shares. The stock ranged in price between $44.13-$45.09 after having opened the day at $45.01 as compared to the previous trading day's close of $44.87. Other companies within the Basic Materials sector that declined today were: Prospect Global Resources ( PGRX), down 20.9%, James River Coal Company ( JRCC), down 19.6%, Enerplus ( ERF), down 14.5%, and Ceres ( CERE), down 14.3%.
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Goldcorp Inc. engages in the acquisition, development, exploration, and operation of precious metal properties. It primarily explores gold, silver, copper, lead, and zinc. Goldcorp has a market cap of $36.24 billion and is part of the metals & mining industry. The company has a P/E ratio of 24, above the S&P 500 P/E ratio of 17.7. Shares are up 0.9% year to date as of the close of trading on Thursday. Currently there are 14 analysts that rate Goldcorp a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Goldcorp as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and disappointing return on equity.

On the positive front, Geokinetics ( GOK), up 28.2%, GMX Resources ( GMXR), up 21.5%, Camac Energy ( CAK), up 15.8%, and Dejour Energy ( DEJ), up 12.6%, were all gainers within the basic materials sector with Pioneer Natural Resources Company ( PXD) being today's featured basic materials sector leader.

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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