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 up 0.6%. By the end of trading, Yamana Gold rose 56 cents (3%) to $19.30 on light volume. Throughout the day, 3.8 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 $18.70-$19.30 after having opened the day at $18.72 as compared to the previous trading day's close of $18.74. Other companies within the Metals & Mining industry that increased today were: Oxford Resource Partners ( OXF), up 11.3%, Minco Gold Corporation ( MGH), up 8.5%, Midway Gold ( MDW), up 8.2%, and Silver Bull Resources ( SVBL), up 8%.
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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 $14.18 billion and is part of the basic materials sector. The company has a P/E ratio of 39.3, above the S&P 500 P/E ratio of 17.7. Shares are up 28.5% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate Yamana Gold a buy, no analysts rate it a sell, and two 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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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