Tuesday, February 17, 2015

Goldcorp (GG) Stock Falling Today as Gold Ends Three-Day Rally

NEW YORK (TheStreet) -- Shares of Goldcorp are falling, lower by 2.25% to $23.01 in afternoon trading Tuesday, with gold prices halting a three-day rally as investors remain cautious after a breakdown of debt talks between Greece and euro zone finance ministers, Reuters reports. The precious metal is also trading lower today as demand from China decreased ahead of the Lunar New Year holiday, Reuters added. Spot gold is trading lower by 1.99% to $1,206.55 an ounce as of 1:14 p.m. ET today. 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. Canada-based Goldcorp is a gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the U.S., Mexico and Central and South America. 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 multiple 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 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 GOLDCORP INC is still fairing well by exceeding its industry average cash flow growth rate of -56.10%. 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 ($0.70 versus -$3.30). This stock's share value has moved by only 10.49% 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. 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 on the basis of return on equity, GOLDCORP INC underperformed against that of the industry average and is significantly less than that of the S&P 500. 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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