Eldorado Gold (EGO) Stock Falls as Gold Prices Dip Again

NEW YORK (TheStreet) -- Shares of Eldorado Gold  (EGO)  were down 4.96% to $5.36 in afternoon trading Monday to give up some of the gains it made Friday after gold prices briefly rallied.

Gold for December delivery rose by 2.4%, or $27.20, to reach $1,169.80 per troy ounce on Friday, the Wall Street Journal reported.

The rally in the gold company's shares on Friday stemmed from data that showed jobs growth in October was weaker than expected, along with gold having its largest one-day percentage gain since June 19.

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

But gold prices once again declined on Monday to $1,165.70, which sent the gold stocks lower.

Separately, TheStreet Ratings team rates ELDORADO GOLD CORP as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate ELDORADO GOLD CORP (EGO) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • ELDORADO GOLD CORP's earnings per share declined by 40.0% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, ELDORADO GOLD CORP swung to a loss, reporting -$0.91 versus $0.45 in the prior year.
  • 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 45.6% when compared to the same quarter one year ago, falling from $36.41 million to $19.79 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, ELDORADO GOLD CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The share price of ELDORADO GOLD CORP has not done very well: it is down 23.81% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Net operating cash flow has decreased to $92.19 million or 23.34% when compared to the same quarter last year. Despite a decrease in cash flow ELDORADO GOLD CORP is still fairing well by exceeding its industry average cash flow growth rate of -41.93%.
  • You can view the full analysis from the report here: EGO Ratings Report

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

More from Markets

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Owner of Moviepass Sees Stock Plummet

Owner of Moviepass Sees Stock Plummet

Ford, GM Gain as China Slashes Auto Import Tariffs

Ford, GM Gain as China Slashes Auto Import Tariffs