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 down 1.7%. By the end of trading, Goldcorp fell $0.73 (-2.6%) to $27.74 on average volume. Throughout the day, 5,546,891 shares of Goldcorp exchanged hands as compared to its average daily volume of 7,285,600 shares. The stock ranged in price between $27.68-$28.63 after having opened the day at $28.60 as compared to the previous trading day's close of $28.47. Other companies within the Metals & Mining industry that declined today were: Walter Energy ( WLT), down 17.4%, Great Basin Gold ( GBG), down 16.0%, Midway Gold ( MDW), down 9.9% and Aluminum Corporation of China ( ACH), down 8.9%.
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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 $22.8 billion and is part of the basic materials sector. The company has a P/E ratio of 15.8, below the S&P 500 P/E ratio of 17.7. Shares are down 22.4% year to date as of the close of trading on Thursday. Currently there are 15 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, disappointing return on equity and weak operating cash flow.

On the positive front, Polymet Mining ( PLM), down 9.7%, Prospect Global Resources ( PGRX), down 7.9%, Pacific Booker Minerals ( PBM), down 6.5% and China Gengsheng Minerals ( CHGS), down 6.2%.

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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