Randgold Resources Ltd (GOLD): 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.

Randgold Resources ( GOLD) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day down 0.9%. By the end of trading, Randgold Resources fell $3.05 (-2.7%) to $109.29 on light volume. Throughout the day, 433,927 shares of Randgold Resources exchanged hands as compared to its average daily volume of 607,500 shares. The stock ranged in price between $108.71-$111.01 after having opened the day at $110.99 as compared to the previous trading day's close of $112.34. Other companies within the Metals & Mining industry that declined today were: Atlatsa Resources ( ATL), down 13.4%, Entree Gold ( EGI), down 11.6%, Comstock Mining ( LODE), down 11.4%, and James River Coal Company ( JRCC), down 11.1%.
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Randgold Resources Limited, together with its subsidiaries, engages in the exploration and mining of gold deposits in west and central Africa. Randgold Resources has a market cap of $10.57 billion and is part of the basic materials sector. The company has a P/E ratio of 24.8, above the S&P 500 P/E ratio of 17.7. Shares are up 12.6% year to date as of the close of trading on Friday. Currently there are three analysts that rate Randgold Resources a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Randgold Resources as a buy. 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, notable return on equity, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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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