Eldorado Gold (EGO) Stock Up Amid Rallying Gold Prices

NEW YORK (TheStreet) -- Shares of Eldorado Gold (EGO) are up 1.16% to $5.22 in afternoon trading Wednesday, as gold prices rally on a softer dollar, according to Reuters.

The dollar hit a near three-month low level following the release of economic data, Reuters added.

U.S. retail sales for April were unchanged, suggesting the economy struggled to rebound after a weak first quarter, Reuters reports.

Spot gold hit a one-month high level of $1,218 an ounce following the release of disappointing U.S. data, and was last trading at $1,214.10 an ounce as of 2:42 p.m. ET today.

U.S. gold futures for June delivery settled at $1,218.20 an ounce, its highest level since early April, and was trading up 1.83% to $1,214.20 an ounce as of 2:32 p.m. ET.

Canada-based Eldorado Gold is an exploration-stage, a discovery-stage, a development-stage, a production-stage and a reclamation-stage mining company with its primary focus on gold, iron ore and silver-lead-zinc mines.

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 few notable weaknesses, 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 generally disappointing historical performance in the stock itself and unimpressive growth in net income."

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

  • The share price of ELDORADO GOLD CORP has not done very well: it is down 17.43% 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. 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.
  • 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 126.4% when compared to the same quarter one year ago, falling from $31.27 million to -$8.24 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength 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 underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • 47.33% is the gross profit margin for ELDORADO GOLD CORP which we consider to be strong. Regardless of EGO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EGO's net profit margin of -3.45% significantly underperformed when compared to the industry average.
  • ELDORADO GOLD CORP 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. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ELDORADO GOLD CORP turned its bottom line around by earning $0.14 versus -$0.91 in the prior year.
  • You can view the full analysis from the report here: EGO Ratings Report

If you liked this article you might like

Eldorado Gold Stock Slumping Despite Integra Gold Acquisition

Eldorado Gold Stock Slumping Despite Integra Gold Acquisition

Eldorado Gold (EGO) Stock Upgraded at BofA/Merrill Lynch

Eldorado Gold (EGO) Stock Upgraded at BofA/Merrill Lynch

Eldorado Gold (EGO) Stock Up, Credit Suisse Upgrades

Eldorado Gold (EGO) Stock Up, Credit Suisse Upgrades

Eldorado Gold (EGO) Stock Slumps as Gold Prices Retreat

Eldorado Gold (EGO) Stock Slumps as Gold Prices Retreat

Eldorado Gold (EGO) Stock Climbs as Gold Prices Rise

Eldorado Gold (EGO) Stock Climbs as Gold Prices Rise