NEW YORK (TheStreet) -- Gold Fields (GFI) - Get Report stock is gaining by 6.40% to $2.66 in late morning trading on Thursday, as a weaker dollar boosts gold prices ahead of Federal Reserve Chairwoman Janet Yellen's speech this afternoon.
Yellen is scheduled to give a speech about inflation and Fed policy at 5 p.m. this afternoon at the the University of Massachusetts, and traders are hoping for hints about the timing of an interest rate hike, The Wall Street Journal reports.
The dollar has weakened ahead of the speech, which is benefiting dollar-traded commodities such as gold, as the cheaper greenback increases demand from foreign buyers.
The market is also awaiting the release of U.S. jobs data this afternoon.
Gold for December delivery is higher by 2% to $1,154.10 per ounce on the COMEX this morning.
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 a number of negative factors, 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 weak operating cash flow. "
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has decreased to $191.30 million or 13.16% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength 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.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income has significantly decreased by 40.0% when compared to the same quarter one year ago, falling from $19.50 million to $11.70 million.
- Despite currently having a low debt-to-equity ratio of 0.56, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
- Despite the weak revenue results, GFI has significantly outperformed against the industry average of 45.0%. Since the same quarter one year prior, revenues fell by 11.6%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- You can view the full analysis from the report here: GFI