Goldcorp (GG) Strong In Pre-Market Trading

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.

Trade-Ideas LLC identified Goldcorp ( GG) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Goldcorp as such a stock due to the following factors:

  • GG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $231.4 million.
  • GG traded 14,500 shares today in the pre-market hours as of 8:21 AM.
  • GG is up 2% today from yesterday's close.

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More details on GG:

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. The stock currently has a dividend yield of 2.4%. Currently there are 13 analysts that rate Goldcorp a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Goldcorp has been 8.1 million shares per day over the past 30 days. Goldcorp has a market cap of $20.2 billion and is part of the basic materials sector and metals & mining industry. Shares are up 14.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant 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, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • GG's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.81 is somewhat weak and could be cause for future problems.
  • 42.73% is the gross profit margin for GOLDCORP INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, GG's net profit margin of 0.53% is significantly lower than the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 99.0% when compared to the same quarter one year ago, falling from $498.00 million to $5.00 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, GOLDCORP INC underperformed against that of the industry average and is significantly less than that of the S&P 500.

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