Royal Gold Inc. (RGLD): 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.

Royal Gold ( RGLD) pushed the Metals & Mining industry higher today making it today's featured metals & mining winner. The industry as a whole closed the day down 0.4%. By the end of trading, Royal Gold rose $1.36 (2.1%) to $67.33 on average volume. Throughout the day, 690,705 shares of Royal Gold exchanged hands as compared to its average daily volume of 717,900 shares. The stock ranged in a price between $66.84-$68.57 after having opened the day at $66.86 as compared to the previous trading day's close of $65.97. Other companies within the Metals & Mining industry that increased today were: Rubicon Minerals ( RBY), up 13.4%, Tanzanian Royalty Exploration Corporation ( TRX), up 10.8%, Mines Management ( MGN), up 10.7%, and Timmins Gold ( TGD), up 9%.
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Royal Gold, Inc., together with its subsidiaries, engages in the acquisition and management of precious metals royalties and similar production based interests. Royal Gold has a market cap of $4.28 billion and is part of the basic materials sector. The company has a P/E ratio of 40.7, above the S&P 500 P/E ratio of 17.7. Shares are down 18.4% year to date as of the close of trading on Friday. Currently there are two analysts that rate Royal Gold a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Royal Gold as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Gold Reserve ( GRZ), down 8%, Avalon Rare Metals ( AVL), down 7.5%, Uranerz Energy Corporation ( URZ), down 7.2%, and Noranda Aluminum ( NOR), down 7.1%, were all laggards within the metals & mining industry with ArcelorMittal ( MT) 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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