NEW YORK (TheStreet) --Shares of Turquoise Hill Resources Ltd. (TRQ - Get Report) are higher by 8.33% to $3.51 in mid-morning trading on Monday, as some mining and related stocks get a jolt today from the rally in the price of gold.
The price of the precious metal is jumping due to the decline in the dollar, which is down as a result of Friday's jobs reports which spiked concerns regarding the strength of the economy ahead of earnings season, Bloomberg reports.
U.S employers added 126,000 workers in March, less than the 245,000 economists were expecting for the month.
The unemployment rate is holding firm at 5.5%.
Gold for June delivery is gaining by 1.77% to $1,222.20 per ounce on the COMEX this morning.
The most recent jobs data made the possibility of the Fed's rate hike, believed to becoming later this year, unclear.
The timing of the interest rates increase "will be data dependent and remains uncertain because the future evolution if the economy cannot be fully anticipated," New York Fed President William Dudley told Bloomberg.
Separately, TheStreet Ratings team rates TURQUOISE HILL RESOURCES LTD as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TURQUOISE HILL RESOURCES LTD (TRQ) a SELL. This is based on the combination of unfavorable investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- In its most recent trading session, TRQ has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- TURQUOISE HILL RESOURCES LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, TURQUOISE HILL RESOURCES LTD reported lower earnings of $0.10 versus $0.18 in the prior year.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income has decreased by 19.4% when compared to the same quarter one year ago, dropping from $138.30 million to $111.41 million.
- TRQ has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, TRQ has a quick ratio of 1.73, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, TURQUOISE HILL RESOURCES LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full analysis from the report here: TRQ Ratings Report