Newmont Mining Corporation (NEM): 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

Newmont Mining Corporation ( NEM) pushed the Metals & Mining industry higher today making it today's featured metals & mining winner. The industry as a whole closed the day up 1.1%. By the end of trading, Newmont Mining Corporation rose $1.05 (3.3%) to $33.10 on average volume. Throughout the day, 7,295,052 shares of Newmont Mining Corporation exchanged hands as compared to its average daily volume of 8,687,200 shares. The stock ranged in a price between $32.12-$33.13 after having opened the day at $32.22 as compared to the previous trading day's close of $32.05. Other companies within the Metals & Mining industry that increased today were: Cardero Resources Corporation ( CDY), up 14.0%, Golden Minerals ( AUMN), up 13.0%, Tanzanian Royalty Exploration Corporation ( TRX), up 11.5% and Hecla Mining Company ( HL), up 11.1%.
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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 $15.7 billion and is part of the basic materials sector. The company has a P/E ratio of 9.7, below the S&P 500 P/E ratio of 17.7. Shares are down 31.0% year to date as of the close of trading on Tuesday. 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 reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. 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 negative front, Great Basin Gold ( GBG), down 18.8%, China Shen Zhou Mining & Resources ( SHZ), down 13.9%, Kimber Resources ( KBX), down 13.0% and James River Coal Company ( JRCC), down 5.8% , were all laggards within the metals & mining industry with Gerdau ( GGB) 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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