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 0.1%. By the end of trading, Yamana Gold rose 24 cents (1.4%) to $16.77 on average volume. Throughout the day, 5.4 million shares of Yamana Gold exchanged hands as compared to its average daily volume of 5.6 million shares. The stock ranged in a price between $16.36-$17 after having opened the day at $16.40 as compared to the previous trading day's close of $16.53. Other companies within the Metals & Mining industry that increased today were: Sutor Technology Group ( SUTR), up 51.5%, General Steel Holdings ( GSI), up 14%, China Gerui Advanced Materials Group ( CHOP), up 8.9%, and Platinum Group Metal ( PLG), up 7.3%.
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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 $12.38 billion and is part of the basic materials sector. The company has a P/E ratio of 34.3, above the S&P 500 P/E ratio of 17.7. Shares are down 4.2% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Yamana Gold a buy, no analysts rate it a sell, and one rates 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 increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Alderon Iron Ore ( AXX), down 6.6%, Teck Resources ( TCK), down 6.4%, Comstock Mining ( LODE), down 6.1%, and Cardero Resources Corporation ( CDY), down 4.2%, were all laggards within the metals & mining industry with Cliffs Natural Resources ( CLF) being today's metals & mining industry laggard.

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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