Randgold Resources Ltd (GOLD): Today's Featured Basic Materials 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

Randgold Resources ( GOLD) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 0.7%. By the end of trading, Randgold Resources fell $2.18 (-2.9%) to $72.61 on average volume. Throughout the day, 637,923 shares of Randgold Resources exchanged hands as compared to its average daily volume of 824,500 shares. The stock ranged in price between $72.50-$73.80 after having opened the day at $73.56 as compared to the previous trading day's close of $74.79. Other companies within the Basic Materials sector that declined today were: Crosshair Energy ( CXZ), down 18.4%, Andatee China Marine Fuel Services Corporat ( AMCF), down 13.2%, Banro Corporation ( BAA), down 9.9% and China Gerui Advanced Materials Group ( CHOP), down 7.8%.
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Randgold Resources Limited engages in the exploration and development of gold deposits in Sub-Saharan Africa. Randgold Resources has a market cap of $6.9 billion and is part of the metals & mining industry. The company has a P/E ratio of 16.2, below the S&P 500 P/E ratio of 17.7. Shares are down 24.1% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Randgold Resources a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Randgold Resources 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

On the positive front, Prospect Global Resources ( PGRX), down 59.9%, China Gengsheng Minerals ( CHGS), down 26.7%, BMB Munai ( BMBM), down 25.0% and Gevo ( GEVO), down 19.6% , were all gainers within the basic materials sector with National Oilwell Varco ( NOV) being today's featured basic materials sector leader.

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).

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