Gold Fields Ltd (GFI): 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.

Gold Fields ( GFI) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Gold Fields fell 16 cents (-1.3%) to $11.85 on average volume. Throughout the day, 3.4 million shares of Gold Fields exchanged hands as compared to its average daily volume of 3.8 million shares. The stock ranged in price between $11.77-$11.92 after having opened the day at $11.87 as compared to the previous trading day's close of $12.01. Other companies within the Metals & Mining industry that declined today were: Silver Bull Resources ( SVBL), down 16.8%, Keegan Resources ( KGN), down 6.7%, China Gengsheng Minerals ( CHGS), down 6.4%, and Mines Management ( MGN), down 6.3%.
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Gold Fields Limited engages in the acquisition, exploration, development, and production of gold properties. It holds interests in eight operating mines in South Africa, Peru, Ghana, and Australia. Gold Fields has a market cap of $8.9 billion and is part of the basic materials sector. The company has a P/E ratio of 10.1, below the S&P 500 P/E ratio of 17.7. Shares are down 2.2% year to date as of the close of trading on Tuesday. Currently there is one analyst that rates Gold Fields a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Gold Fields as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Metals USA Holdings ( MUSA), up 12.8%, Atlatsa Resources ( ATL), up 11.8%, Gold Standard Ventures ( GSV), up 10.1%, and Platinum Group Metal ( PLG), up 9.7%, were all gainers within the metals & mining industry with Vale ( VALE) 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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