Why Mark Minervini may look into GOLD FIELDS LTD-SPONS ADR (NYSE:GFI)

In this article we will dive into GOLD FIELDS LTD-SPONS ADR (NYSE:GFI) as a possible candidate for growth investing. Investors should always do their own research, but we noticed GOLD FIELDS LTD-SPONS ADR showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

Minervini Trend Template Analysis.

GFI checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Growth Examination for GFI

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. GFI scores a 4 out of 10:

Explosive Earnings Growth

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), GFI highlights its ability to generate increasing profitability, showcasing a 254.0% growth.
• GFI has achieved 77.8% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• The q2q revenue growth of 37.74% of GFI highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.

Financial Strength & Profitability

• With positive growth in its operating margin over the past year, GFI showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• The profit margin of GFI has seen steady growth over the past year, signaling improved profitability.
• GFI has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• The Return on Equity(ROE) of GFI is 23.94%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• With a Debt-to-Equity ratio at 0.41, GFI showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.

Market Strength & Institutional Confidence

• With institutional shareholders at 61.53%, GFI demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• GFI has achieved an impressive Relative Strength (RS) rating of 93.44, showcasing its ability to outperform the broader market.

How do we evaluate the setup for GFI?

ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. GFI currently holds a 3 as its setup rating, suggesting a particular level of consolidation in the stock.

Although GFI has an excellent technical rating, it does not present a decent entry opportunity at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

For an up to date full technical analysis you can check the technical report of GFI

Final Thoughts

It looks like GOLD FIELDS LTD-SPONS ADR meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.