Goldcorp Inc. (GG): 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

Goldcorp ( GG) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Goldcorp fell $0.31 (-1.2%) to $26.52 on average volume. Throughout the day, 7,125,832 shares of Goldcorp exchanged hands as compared to its average daily volume of 7,415,100 shares. The stock ranged in price between $26.30-$27.27 after having opened the day at $26.85 as compared to the previous trading day's close of $26.83. Other companies within the Metals & Mining industry that declined today were: Cardero Resources Corporation ( CDY), down 17.5%, Aurizon Mines ( AZK), down 14.9%, China Shen Zhou Mining & Resources ( SHZ), down 13.9% and China Gengsheng Minerals ( CHGS), down 10.3%.
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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 $21.8 billion and is part of the basic materials sector. The company has a P/E ratio of 15.2, below the S&P 500 P/E ratio of 17.7. Shares are down 26.9% year to date as of the close of trading on Friday. 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 largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, weak operating cash flow and a generally disappointing performance in the stock itself.

On the positive front, Great Basin Gold ( GBG), down 15.0%, Kobex Minerals ( KXM), down 13.0%, Silver Bull Resources ( SVBL), down 8.8% and Hi-Crush Partners ( HCLP), down 7.5% , were all gainers within the metals & mining industry with Freeport-McMoRan Copper & Gold ( FCX) 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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