NEW YORK (TheStreet) -- Shares of Gold Fields Ltd. are down by 6.21% to $4.53 in mid-morning trading on Tuesday, as some gold and mining related stocks slip today along with the price of the precious metal. Gold for April delivery is declining by 1.18% to $1,212.60 per ounce on the COMEX this morning. One reason for the drop in the yellow metal's price is the upcoming Lunar New Year, the Wall Street Journal reports. 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. China and India are battling it out for the top spot in the global consumption of gold. Demand and prices will fall with traders celebrating the extended holiday not at their desks, the Journal added. "New Year holidays in China begin tomorrow, and participants will be out through to Tuesday next week. The absence of this key physical market in a sense removes a natural cushion and therefore increases gold's downside potential," an analyst with UBS told the Journal. 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 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. 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, GOLD FIELDS LTD's return on equity significantly trails that of both the industry average and 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 ($0.23 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 -56.10%. 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.
Click to view a price quote on GFI. Click to research the Metals & Mining industry.
from Latest TSC Headlines http://ift.tt/1L6SF6w
No comments:
Post a Comment