Franco-Nevada Corp (FNV): Today's Featured Basic Materials Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Franco-Nevada ( FNV) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Franco-Nevada fell $1.41 (-3.1%) to $44.22 on average volume. Throughout the day, 762,439 shares of Franco-Nevada exchanged hands as compared to its average daily volume of 717,600 shares. The stock ranged in price between $44.10-$46.12 after having opened the day at $45.62 as compared to the previous trading day's close of $45.63. Other companies within the Basic Materials sector that declined today were: Vista Gold Corporation ( VGZ), down 16.9%, Prospect Global Resources ( PGRX), down 16.1%, Atlatsa Resources ( ATL), down 10.0% and MagneGas Corporation ( MNGA), down 9.6%.

Franco-Nevada Corporation operates as a gold-focused royalty and stream company in the United States, Canada, Mexico, Australia, and Africa. The company has interests in platinum group metal, oil and gas, and other resource properties. Franco-Nevada has a market cap of $6.5 billion and is part of the metals & mining industry. Shares are down 22.0% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Franco-Nevada a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Franco-Nevada 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, expanding profit margins 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, unimpressive growth in net income and premium valuation.

On the positive front, KiOR ( KIOR), up 57.9%, Andatee China Marine Fuel Services Corporat ( AMCF), up 37.0%, Kingold Jewelry ( KGJI), up 25.4% and Cardero Resources Corporation ( CDY), up 18.1% , were all gainers within the basic materials sector with PPG Industries ( PPG) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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