Goldcorp (GG) Stock Closed Higher Today as Gold Prices RalliedBy twocents@thestreet (Sebastian Silva) NEW YORK (TheStreet) -- Shares of Goldcorp closed up 1.73% to $18.84 as gold futures rallied from a four-week low and U.S. equities declined, boosting demand for the metal as an alternative investment, Bloomberg reports. Gold futures for February delivery were upBy twocents@thestreet (Sebastian Silva) NEW YORK (TheStreet) -- Shares of Goldcorp closed up 1.73% to $18.84 as gold futures rallied from a four-week low and U.S. equities declined, boosting demand for the metal as an alternative investment, Bloomberg reports. Gold futures for February delivery were up by 0.19%, to $1,186.30 an ounce on the COMEX at 3:29 p.m. on thin volume at the end of the holiday season. Trading was 22% below the 100-day average for this time, Bloomberg said, adding that gold last year posted a consecutive annual loss for the first time since 1998. The rebound came as the stock market turned lower following a larger-than-expected decline in the Institute for Supply Managements December manufacturing index, which declined to 55.5% from 58.7% in November, Marketwatch said. Economists had forecast a reading of 57%. Exclusive Report: Jim Cramers Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. We got some gold buying at the same time stocks sold off, RBC Capital strategist George Gero told Bloomberg. Its all about asset allocation for the beginning of the year, he said. Separately, TheStreet Ratings team rates GOLDCORP INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation: We rate GOLDCORP INC (GG) a SELL. This is driven by several 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 companys weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and feeble growth in its earnings per share. Highlights from the analysis by TheStreet Ratings Team goes as follows: 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 980.0% when compared to the same quarter one year ago, falling from $5.00 million to -$44.00 million. Net operating cash flow has decreased to $192.00 million or 29.92% when compared to the same quarter last year. Despite a decrease in cash flow of 29.92%, GOLDCORP INC is in line with the industry average cash flow growth rate of -31.21%. GOLDCORP INCs earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GOLDCORP INC swung to a loss, reporting -$3.30 versus $1.78 in the prior year. This year, the market expects an improvement in earnings ($0.75 versus -$3.30). This stocks share value has moved by only 18.09% over the past year. 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. 36.09% is the gross profit margin for GOLDCORP INC which we consider to be strong. Regardless of GGs high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GGs net profit margin of -5.12% significantly underperformed when compared to the industry average. You can view the full analysis from the report here: GG 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. Click to view a price quote on GG. Click to research the Metals & Mining industry. ift.tt/1gB4pon
Posted on: Fri, 02 Jan 2015 22:10:41 +0000
Trending Topics
Recently Viewed Topics
© 2015