Goldcorp Inc. (GG): Today's Featured Basic Materials 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

Goldcorp ( GG) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 0.4%. By the end of trading, Goldcorp fell $1.07 (-4.0%) to $25.82 on average volume. Throughout the day, 9,301,939 shares of Goldcorp exchanged hands as compared to its average daily volume of 7,321,600 shares. The stock ranged in price between $25.78-$26.44 after having opened the day at $26.40 as compared to the previous trading day's close of $26.89. Other companies within the Basic Materials sector that declined today were: China Shen Zhou Mining & Resources ( SHZ), down 17.2%, Andatee China Marine Fuel Services Corporat ( AMCF), down 10.3%, Timberline Resources Corporation ( TLR), down 9.6% and China Gengsheng Minerals ( CHGS), down 9.5%.
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Goldcorp Inc. engages in the acquisition, development, exploration, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It primarily explores for gold ores, as well as for silver, copper, lead, and zinc ores. Goldcorp has a market cap of $22.2 billion and is part of the metals & mining industry. The company has a P/E ratio of 15.4, below the S&P 500 P/E ratio of 17.7. Shares are down 26.7% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Goldcorp a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Goldcorp as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.

On the positive front, Houston American Energy Corporation ( HUSA), down 19.9%, Torch Energy Royalty ( TRU), down 13.2%, Zion Oil & Gas ( ZN), down 10.7% and James River Coal Company ( JRCC), down 9.9% , were all gainers within the basic materials sector with Halliburton Company ( HAL) being today's featured basic materials sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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