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 up 0.8%. By the end of trading, Randgold Resources fell $1.97 (-2%) to $95.83 on average volume. Throughout the day, 672,777 shares of Randgold Resources exchanged hands as compared to its average daily volume of 498,400 shares. The stock ranged in price between $95.07-$96.48 after having opened the day at $96.15 as compared to the previous trading day's close of $97.80. Other companies within the Metals & Mining industry that declined today were: Gold Reserve ( GRZ), down 6.1%, China Gengsheng Minerals ( CHGS), down 6%, Prospect Global Resources ( PGRX), down 4.8%, and Primero Mining ( PPP), down 4.5%.
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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 $9.27 billion and is part of the basic materials sector. The company has a P/E ratio of 21.9, above the S&P 500 P/E ratio of 17.7. Shares are up 1.5% year to date as of the close of trading on Thursday. Currently there are four analysts that rate Randgold Resources a buy, no analysts rate it a sell, and five 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 good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Timberline Resources Corporation ( TLR), up 12.4%, USEC ( USU), up 9.5%, Alderon Iron Ore ( AXX), up 7.7%, and Uranium Resources ( URRE), up 7.2%, 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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