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 down 0.3%. By the end of trading, Yamana Gold rose 75 cents (5.2%) to $15.15 on heavy volume. Throughout the day, 9.2 million shares of Yamana Gold exchanged hands as compared to its average daily volume of 5.7 million shares. The stock ranged in a price between $14.60-$15.36 after having opened the day at $14.77 as compared to the previous trading day's close of $14.40. Other companies within the Metals & Mining industry that increased today were: Silver Bull Resources ( SVBL), up 10.9%, Tanzanian Royalty Exploration Corporation ( TRX), up 9.7%, Banro Corporation ( BAA), up 7.7%, and Vista Gold Corporation ( VGZ), up 6.8%.
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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 $11.31 billion and is part of the basic materials sector. The company has a P/E ratio of 31.4, above the S&P 500 P/E ratio of 17.7. Shares are down 12.6% 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 and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Kimber Resources ( KBX), down 13.6%, Noranda Aluminum ( NOR), down 11.7%, Atlatsa Resources ( ATL), down 9.7%, and DRDGold ( DRD), down 8.3%, were all laggards within the metals & mining industry with United States Steel Corporation ( X) 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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