Anglogold Ashanti Ltd (AU): Today's Featured Basic Materials Winner

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.

Anglogold Ashanti ( AU) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 2.0%. By the end of trading, Anglogold Ashanti rose $0.21 (1.4%) to $14.85 on average volume. Throughout the day, 2,966,754 shares of Anglogold Ashanti exchanged hands as compared to its average daily volume of 3,068,700 shares. The stock ranged in a price between $14.64-$15.07 after having opened the day at $14.69 as compared to the previous trading day's close of $14.64. Other companies within the Basic Materials sector that increased today were: Minco Gold Corporation ( MGH), up 11.9%, Golden Star Resources ( GSS), up 8.2%, Timberline Resources Corporation ( TLR), up 7.7% and Avino Silver & Gold Mines ( ASM), up 7.1%.

AngloGold Ashanti Limited engages in the exploration, production, and marketing of gold. It also produces by-products, such as silver, uranium, and sulfuric acid. Anglogold Ashanti has a market cap of $5.8 billion and is part of the metals & mining industry. The company has a P/E ratio of 8.9, below the S&P 500 P/E ratio of 17.7. Shares are up 22.6% year to date as of the close of trading on Friday. Currently there are 2 analysts that rate Anglogold Ashanti a buy, 2 analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Anglogold Ashanti as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.

On the negative front, James River Coal Company ( JRCC), down 19.1%, Sutor Technology Group ( SUTR), down 12.1%, FX Energy ( FXEN), down 10.3% and China Natural Resources ( CHNR), down 9.5% , were all laggards within the basic materials sector with Anadarko Petroleum ( APC) 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.

If you liked this article you might like

President Trump Has Become 'Something of an Albatross' to the Stock Market, Jim Cramer Says