Royal Gold Inc. (RGLD): Today's Featured Basic Materials 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

Royal Gold ( RGLD) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 1.2%. By the end of trading, Royal Gold rose $1.30 (2.4%) to $56.15 on light volume. Throughout the day, 631,796 shares of Royal Gold exchanged hands as compared to its average daily volume of 963,500 shares. The stock ranged in a price between $54.69-$56.47 after having opened the day at $54.95 as compared to the previous trading day's close of $54.85. Other companies within the Basic Materials sector that increased today were: Harvest Natural Resources ( HNR), up 32.9%, China Gengsheng Minerals ( CHGS), up 15.2%, Great Basin Gold ( GBG), up 7.8% and GeoPetro Resources Company ( GPR), up 7.7%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, 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.

Royal Gold, Inc., together with its subsidiaries, engages in the acquisition and management of precious metals royalties and similar production based interests. Royal Gold has a market cap of $3.6 billion and is part of the metals & mining industry. The company has a P/E ratio of 43.8, above the S&P 500 P/E ratio of 17.7. Shares are down 31.2% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Royal Gold a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Royal Gold as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, 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 a generally disappointing performance in the stock itself, disappointing return on equity and deteriorating net income.

On the negative front, Cardero Resources Corporation ( CDY), down 13.9%, Torch Energy Royalty ( TRU), down 12.9%, Zion Oil & Gas ( ZN), down 12.7% and Quest Rare Minerals ( QRM), down 11.6% , were all laggards within the basic materials sector with EOG Resources ( EOG) being today's basic materials sector laggard.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

null

More from Markets

3 Things Investors Must Know for Monday

3 Things Investors Must Know for Monday

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric