Newmont Mining Corporation (NEM): 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.

Newmont Mining Corporation ( NEM) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 0.2%. By the end of trading, Newmont Mining Corporation rose 71 cents (1.6%) to $45.04 on average volume. Throughout the day, 4.9 million shares of Newmont Mining Corporation exchanged hands as compared to its average daily volume of 5.9 million shares. The stock ranged in a price between $44.20-$45.17 after having opened the day at $44.23 as compared to the previous trading day's close of $44.33. Other companies within the Basic Materials sector that increased today were: Goodrich Petroleum ( GDP), up 18.3%, ZaZa Energy ( ZAZA), up 13.9%, Metals USA Holdings ( MUSA), up 12.8%, and Penford Corporation ( PENX), up 12.4%.
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Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company's assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, New Zealand, and Mexico. Newmont Mining Corporation has a market cap of $21.68 billion and is part of the metals & mining industry. The company has a P/E ratio of 102.6, above the S&P 500 P/E ratio of 17.7. Shares are down 5% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate Newmont Mining Corporation a buy, no analysts rate it a sell, and nine rate it a hold.

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

On the negative front, Silver Bull Resources ( SVBL), down 16.8%, GeoGlobal Resources ( GGR), down 11.9%, Gasco Energy ( GSX), down 10.3%, and SandRidge Mississippian Trust I ( SDT), down 8.2%, were all laggards within the basic materials sector with Suncor Energy ( SU) 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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