Randgold Resources Ltd (GOLD): Today's Featured Basic Materials 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.

Randgold Resources ( GOLD) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 1%. By the end of trading, Randgold Resources rose $2.74 (2.9%) to $98.39 on heavy volume. Throughout the day, 840,834 shares of Randgold Resources exchanged hands as compared to its average daily volume of 508,800 shares. The stock ranged in a price between $98.18-$100.78 after having opened the day at $99.43 as compared to the previous trading day's close of $95.65. Other companies within the Basic Materials sector that increased today were: Prospect Global Resources ( PGRX), up 26.2%, China Natural Resources ( CHNR), up 14.2%, Oxford Resource Partners ( OXF), up 9.5%, and Penford Corporation ( PENX), up 8.7%.
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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 $8.67 billion and is part of the metals & mining industry. The company has a P/E ratio of 20.4, above the S&P 500 P/E ratio of 17.7. Shares are down 5.1% year to date as of the close of trading on Friday. Currently there are six analysts that rate Randgold Resources a buy, no analysts rate it a sell, and four 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 negative front, Quaterra Resources ( QMM), down 19.1%, Pure Bioscience ( PURE), down 10.2%, Mexco Energy Corporation ( MXC), down 9%, and Houston American Energy Corporation ( HUSA), down 8.3%, were all laggards within the basic materials sector with Royal Dutch Shell ( RDS.A) being today's basic materials sector laggard.

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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