Barrick Gold Corporation (ABX): 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.

Barrick Gold Corporation ( ABX) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day down 1.3%. By the end of trading, Barrick Gold Corporation fell 42 cents (-1.3%) to $32.30 on average volume. Throughout the day, 5.7 million shares of Barrick Gold Corporation exchanged hands as compared to its average daily volume of 7.6 million shares. The stock ranged in price between $32.07-$32.41 after having opened the day at $32.35 as compared to the previous trading day's close of $32.72. Other companies within the Metals & Mining industry that declined today were: Minco Gold Corporation ( MGH), down 10.1%, Cardero Resources Corporation ( CDY), down 7.3%, Entree Gold ( EGI), down 7.3%, and Platinum Group Metal ( PLG), down 6.9%.
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Barrick Gold Corporation engages in the production and sale of gold and copper. The company has a portfolio of 27 operating mines, and exploration and development projects located in North America, South America, the Australia Pacific region, and Africa. Barrick Gold Corporation has a market cap of $32.75 billion and is part of the basic materials sector. The company has a P/E ratio of 9.7, below the S&P 500 P/E ratio of 17.7. Shares are down 6.5% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Barrick Gold Corporation a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Barrick Gold Corporation as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, 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 weak operating cash flow, a generally disappointing performance in the stock itself and deteriorating net income.

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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