Goldcorp (GG) Rising Before The Market Opens

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.

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 $153.2 million.
  • GG traded 22,600 shares today in the pre-market hours as of 9:00 AM.
  • GG is up 2.1% today from yesterday's close.

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More details on GG:

Goldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. The company primarily explores for gold, silver, copper, lead, and zinc deposits. The stock currently has a dividend yield of 3%. Currently there are 10 analysts that rate Goldcorp a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Goldcorp has been 7.8 million shares per day over the past 30 days. Goldcorp has a market cap of $16.4 billion and is part of the basic materials sector and metals & mining industry. Shares are up 8.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Goldcorp as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • 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 120.0% when compared to the same quarter one year ago, falling from -$1,089.00 million to -$2,396.00 million.
  • The share price of GOLDCORP INC has not done very well: it is down 23.83% 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 $274.00 million or 10.74% when compared to the same quarter last year. Despite a decrease in cash flow GOLDCORP INC is still fairing well by exceeding its industry average cash flow growth rate of -40.50%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market, GOLDCORP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 18.4%. Since the same quarter one year prior, revenues fell by 13.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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