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 1.2%. By the end of trading, Newmont Mining Corporation fell $0.80 (-2.5%) to $30.63 on average volume. Throughout the day, 11,947,923 shares of Newmont Mining Corporation exchanged hands as compared to its average daily volume of 8,767,000 shares. The stock ranged in price between $30.30-$31.32 after having opened the day at $31.32 as compared to the previous trading day's close of $31.43. Other companies within the Metals & Mining industry that declined today were: China Shen Zhou Mining & Resources ( SHZ), down 17.2%, Timberline Resources Corporation ( TLR), down 9.6%, China Gengsheng Minerals ( CHGS), down 9.5% and Mines Management ( MGN), down 8.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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, Mexico, and New Zealand. Newmont Mining Corporation has a market cap of $15.5 billion and is part of the basic materials sector. The company has a P/E ratio of 9.6, below the S&P 500 P/E ratio of 17.7. Shares are down 32.3% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Newmont Mining Corporation a buy, 1 analyst rates it a sell, and 6 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 attractive 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 weak operating cash flow, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

On the positive front, James River Coal Company ( JRCC), down 9.9%, Lihua International ( LIWA), down 9.0%, Entree Gold ( EGI), down 7.3% and Stillwater Mining Company ( SWC), down 6.9% , 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
null