Tuesday, January 13, 2015

Gold Fields (GFI) Stock Retreating Today as Barclays Expects Gold Prices to Move Lower

NEW YORK (TheStreet) -- Shares of Gold Fields Ltd. are falling by 3.52% to $5.75 in early afternoon trading on Tuesday, as gold stocks slump today following Barclays assessment that the price of the precious metal will test out new lows in 2015, Reuters reports. The firm is suggesting that gold prices will continue to struggle with a stronger dollar and that the precious metal will be negatively affected by the Fed's first interest rate increase in nine years. Barclays has estimated that gold prices will average $1,170 per ounce in 2015, a decrease from its previous forecast of $1,150 per ounce. For 2016 Barclays sees the price of gold at $1,150 an ounce, Reuters added. 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. For today, Gold prices are higher by 0.33% to $1,236.90 per ounce on the COMEX this afternoon. Separately, TheStreet Ratings team rates GOLD FIELDS LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: "We rate GOLD FIELDS LTD (GFI) 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. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity." Highlights from the analysis by TheStreet Ratings Team goes as follows: Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, GOLD FIELDS LTD underperformed against that of the industry average and is significantly less than that of the S&P 500. Despite currently having a low debt-to-equity ratio of 0.53, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. GOLD FIELDS LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GOLD FIELDS LTD swung to a loss, reporting -$0.78 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($0.11 versus -$0.78). 35.17% is the gross profit margin for GOLD FIELDS LTD which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, GFI's net profit margin of 2.73% significantly trails the industry average. Net operating cash flow has increased to $205.50 million or 29.08% when compared to the same quarter last year. In addition, GOLD FIELDS LTD has also vastly surpassed the industry average cash flow growth rate of -31.38%. You can view the full analysis from the report here: GFI 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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