Anglogold Ashanti Limited (AU): 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.

Anglogold Ashanti ( AU) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day up 0.7%. By the end of trading, Anglogold Ashanti fell 28 cents (-1.1%) to $24.15 on average volume. Throughout the day, 2.1 million shares of Anglogold Ashanti exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $24.04-$24.75 after having opened the day at $24.51 as compared to the previous trading day's close of $24.43. Other companies within the Metals & Mining industry that declined today were: Banro Corporation ( BAA), down 23.2%, China Gerui Advanced Materials Group ( CHOP), down 9.1%, Kimber Resources ( KBX), down 7.9%, and James River Coal Company ( JRCC), down 6.7%.
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AngloGold Ashanti Limited primarily engages in the exploration and production of gold. It also produces by-products, such as silver, uranium oxide, and sulfuric acid. Anglogold Ashanti has a market cap of $9 billion and is part of the basic materials sector. The company has a P/E ratio of 7.4, below the S&P 500 P/E ratio of 17.7. Shares are down 25.2% year to date as of the close of trading on Wednesday. Currently there are two analysts that rate Anglogold Ashanti a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Anglogold Ashanti 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 deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

On the positive front, Rare Element Resources ( REE), up 14.8%, Timmins Gold ( TGD), up 14.5%, Great Panther Silver ( GPL), up 13.4%, and Quest Rare Minerals ( QRM), up 13.1%, were all gainers within the metals & mining industry with Consol Energy ( CNX) 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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