Newmont Mining Corporation (NEM): 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.

Newmont Mining Corporation ( NEM) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Newmont Mining Corporation fell 82 cents (-2%) to $40.62 on average volume. Throughout the day, 8.8 million shares of Newmont Mining Corporation exchanged hands as compared to its average daily volume of 6.5 million shares. The stock ranged in price between $40.58-$41.25 after having opened the day at $41.22 as compared to the previous trading day's close of $41.44. Other companies within the Metals & Mining industry that declined today were: Silvercorp Metals ( SVM), down 7.9%, Banro Corporation ( BAA), down 6.5%, Jaguar Mining ( JAG), down 6.4%, and Timmins Gold ( TGD), down 5.7%.
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Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company's assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, New Zealand, and Mexico. Newmont Mining Corporation has a market cap of $20.15 billion and is part of the basic materials sector. The company has a P/E ratio of 10.8, below the S&P 500 P/E ratio of 17.7. Shares are down 10.8% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate Newmont Mining Corporation a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Newmont Mining Corporation as a hold. The company's strengths can be seen in multiple areas, such as its 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 a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.

On the positive front, North American Palladium ( PAL), up 11.3%, US Silica Holdings ( SLCA), up 10.9%, Thompson Creek Metals Company ( TC), up 8.2%, and China Natural Resources ( CHNR), up 7.1%, were all gainers within the metals & mining industry with Nucor ( NUE) 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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