NEW YORK (TheStreet) -- Shares of gold producer Goldcorp were gaining 1.8% to $24.24 Tuesday following the announcement that it will acquire Probe Mines , and as gold prices increased. Earlier Tuesday Goldcorp announced it will acquire all outstanding shares of Probe Mines for $526 million Canadian dollars (about $439 million). Under the agreement the company will issue 0.1755 shares of Goldcorp for each common share of Probe it doesn't currently own. Goldcorp currently owns 8.4 million shares of Probe, representing 9.3% of all outstanding shares. U.S. gold futures for February delivery were gaining 1.5% to $1,296.10 an ounce on the Comex early Tuesday afternoon, their highest levels in four and a half months. Exclusive Report: Jim Cramer's 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. Gold prices were rallying due to uncertainty over the extent of a stimulus program from the European Central Bank, according to Reuters. The bank is expected to announce a quantitative easing program during a meeting on Thursday. 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 some concerns, 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 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. In conjunction, when comparing current results to the industry average, GOLDCORP INC has marginally lower results. GOLDCORP INC's 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 ($0.72 versus -$3.30). This stock has managed to decline in share value by 2.29% over the past twelve months. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year. 36.09% is the gross profit margin for GOLDCORP INC which we consider to be strong. Regardless of GG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GG's 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.
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