Yamana Gold Inc (AUY): 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

Yamana Gold ( AUY) pushed the Metals & Mining industry higher today making it today's featured metals & mining winner. The industry as a whole closed the day down 0.2%. By the end of trading, Yamana Gold rose $0.11 (1.0%) to $10.82 on average volume. Throughout the day, 7,114,004 shares of Yamana Gold exchanged hands as compared to its average daily volume of 7,935,800 shares. The stock ranged in a price between $10.78-$11.02 after having opened the day at $10.92 as compared to the previous trading day's close of $10.71. Other companies within the Metals & Mining industry that increased today were: Sinocoking Coal and Coke Chemicals ( SCOK), up 10.7%, Gold Standard Ventures ( GSV), up 9.3%, Quaterra Resources ( QMM), up 8.5% and USEC ( USU), up 8.0%.
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Yamana Gold Inc. engages in the exploration, development, and production of mineral properties, primarily gold. It also explores for copper, molybdenum, zinc, and silver metals. Yamana Gold has a market cap of $8.0 billion and is part of the basic materials sector. The company has a P/E ratio of 21.2, above the S&P 500 P/E ratio of 17.7. Shares are down 38.3% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Yamana Gold a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Yamana Gold as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, China Shen Zhou Mining & Resources ( SHZ), down 24.4%, Revett Minerals ( RVM), down 23.5%, China Gengsheng Minerals ( CHGS), down 11.1% and Timberline Resources Corporation ( TLR), down 8.9% , were all laggards within the metals & mining industry with Southern Copper Corporation ( SCCO) 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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