Gold Fields and Diageo have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – December 15, 2025 – Zacks Equity Research shares Gold Fields Ltd. (GFI), as the Bull of the Day and, Diageo DEO, as the Bear of the Day. In addition, Zacks Equity Research provides analysis on — Micron Technology, Inc. MU, Palantir Technologies Inc. PLTR and NVIDIA Corp. NVDA.

Here is a synopsis of all three stocks:

Bull of the Day:

Gold Fields Ltd. is one of the market’s premier gold mining companies having outperformed the broad market and industry average on all look back periods since 2014. GFI is the eighth largest producer of gold in the world, with mines operating in Australia, Chile, Ghana, Peru and South Africa and Canada. Over the last five years the stock has compounded at an average annual rate of 38%, bolstered in part by the bull market in gold, but also in its high-level operating leverage.

Gold Fields enjoys one of the best fundamental setups among the gold mining sector, with some of the highest growth forecast for its top and bottom line, complimented by a bargain valuation and institutional level scale. In addition to robust fundamentals, the stock is also showing signs of technical strength; both GFI stock and gold itself are forming compelling bullish patterns.

Finally, Gold Fields has experienced significant upgrades to its earnings estimates, giving it a Zacks Rank #1 (Strong Buy) rating. These catalysts all together make Gold Fields a worthy consideration for investors looking to gain exposure to gold and diversify away from the stock market.

Tailwinds for Gold Mining Stocks

Gold remains in a powerful bull market, rising more than 60% this year and outperforming major equity indexes since 2019. The backdrop driving this strength, persistent geopolitical uncertainty, rising global tensions, and elevated fiscal risks, has only intensified. There is little indication that these forces will ease anytime soon. At the same time, global central banks have been accumulating gold at the fastest pace in decades, creating a structural source of demand that supports higher prices.

As noted earlier, both the underlying commodity and GFI are forming bullish technical patterns. In the chart below, we can see that GFI broke out and then pulled back into its prior range. The key levels to watch remain the upper boundary near $44 and the lower boundary around $37.50. A decisive close above or below these levels would signal the direction of the next major move. Given the strong buying flows into gold and gold-linked equities, I continue to favor an upside resolution.

Gold Fields Limited Shares Trade at a Discount to Growth

Gold Fields is delivering one of the strongest growth profiles in the precious metals industry. The company is expected to increase sales by 79% this year and an additional 26.5% next year, while earnings are projected to grow at an impressive 51.4% annually over the next three to five years. Few miners are generating that kind of multi-year growth outlook.

Despite this exceptional trajectory, GFI trades at a forward earnings multiple of just 14.2x. That is meaningfully below the industry average of roughly 19x and sits right in line with the company’s own long-term historical valuation. When a business with this level of earnings acceleration trades at a multiple this low, the result is a deeply discounted PEG ratio. In Gold Fields’ case, the PEG stands at just 0.28, signaling that investors are paying very little for an extremely high rate of earnings expansion.

Should Investors Buy Shares in GFI?

Gold Fields offers a rare blend of high growth, strong operating leverage, and an attractive valuation. The company is expanding faster than most of its peers, yet its shares still trade at a meaningful discount to the industry. With gold in a powerful uptrend and GFI forming bullish technical patterns, the stock appears well-positioned for further gains.

For investors seeking exposure to gold, a hedge against market volatility, or simply a high-quality growth story within the mining sector, Gold Fields stands out as a compelling opportunity.

Bear of the Day:

One of the most surprising consumer trends in recent years has been the sharp decline in alcohol consumption, particularly among younger generations. Alcohol usage in America has dropped from 60% in 2023 to just 54% today, the lowest level recorded since tracking began in 1939.

Not surprisingly, spirits sales volumes in the US have stagnated, with surveys showing a growing share of consumers cutting back on or eliminating alcohol altogether. This shift has created a difficult operating environment for legacy alcohol companies like Diageo.

Diageo shares have reflected those challenges, severely underperforming the already underperforming industry and the market year-to-date as both earnings and sales growth expectations trend lower. Even after such a decline, DEO still doesn’t trade an especially discounted valuation as earnings shrink. Until Diageo can reinvent its portfolio to align with shifting consumer preferences, or the alcohol consumption trend reverses, investors may be better off avoiding the name.

Diageo Shares Fall on Continuous Earnings Downgrades

Diageo currently holds a Zacks Rank #5 (Strong Sell), reflecting a steady stream of downward earnings revisions over the past two months. The weakness is not new. As the chart below shows, analysts have been cutting earnings estimates consistently since mid-2022, and the company has struggled to regain momentum.

This decline in estimates mirrors the company’s fundamental performance. Both sales and earnings have followed the same downward trend over the last two years, which has naturally weighed on the stock price. Since 2022, revenue has been essentially flat, with no meaningful growth expected this year or next. Earnings have fared even worse, falling roughly 20% over the same period, and forecasts show little sign of improvement going forward.

With deteriorating fundamentals, stagnant demand trends, and persistent estimate cuts, Diageo’s near-term outlook remains challenged conditions that continue to justify the stock’s current Zacks Rank and the ongoing pressure on its share price.

Should Investors Avoid DEO Stock?

Given the persistent decline in alcohol consumption, stagnant sales trends, and steady stream of earnings downgrades, Diageo’s challenges appear far from temporary. The company is facing both structural headwinds in consumer behavior and company-specific pressure on growth and margins. With no meaningful recovery in revenue or earnings expected in the near term, and valuations still not compelling relative to the risk, Diageo offers little justification for new investment.

Until the company can reposition its portfolio to match shifting consumer preferences or demonstrate a credible path back to growth, DEO is likely to remain under pressure. For now, investors may be better served focusing on areas of the market where fundamentals are improving rather than deteriorating.

Additional content:

Top 3 AI Stocks, Including NVIDIA to Buy Now for 2026 Growth

Like in 2025, the rapid growth of artificial intelligence (AI) is expected to persist in 2026 and beyond, driving demand for AI hardware, software and cloud infrastructure worldwide. Micron Technology, Inc., Palantir Technologies Inc. and NVIDIA Corp.  have already ridden the AI wave and are well poised to gain from the expanding trend, making them attractive investment opportunities for the year ahead. Let’s see in detail –

Micron Raises Outlook as HBM Demand Booms, Delivering Strong FY25

Micron’s status as the sole U.S.-based memory manufacturer has given the company a distinct advantage to ride the accelerating AI wave. That’s why Micron’s CEO, Sanjay Mehrotra, said that the company “is entering fiscal 2026 with strong momentum.”

The incessant demand for Micron’s high-bandwidth memory (HBM) chips, which can curb power consumption and process large volumes of data, has driven the company’s performance in fiscal 2025. In the fiscal fourth quarter, Micron reported revenues of $11.32 billion, an increase from $7.75 billion in the prior year. For the full fiscal year, revenues reached $37.38 billion, up from $25.11 billion in the previous year, according to investors.micron.com.

Strong demand for HBM chips prompted Micron to raise its fiscal first-quarter revenue outlook to $12.5 billion. Micron’s cloud memory business also showed signs of improvement, and the company reported a net income of $8.54 billion for fiscal 2025. On this optimism, Micron’s estimated earnings growth rate for the next fiscal year is a solid 24.4%.

Palantir Sees Strong Growth as AIP Soars in U.S. Markets

A larger number of clients, both from the U.S. commercial sector and government segment, are adopting Palantir’s successful Artificial Intelligence Platform (AIP). The growing demand for AIP is expected to fuel the company’s revenue growth and profitability.

Palantir has already raised its fourth-quarter sales outlook to between $1.327 billion and $1.331 billion. For the full fiscal year, the revenue guidance has been increased to between $4.396 billion and $4.400 billion, as mentioned on investors.palantir.com.

In the third quarter, Palantir’s revenues were $1.18 billion, up 63% year over year and 18% sequentially. U.S. commercial segment revenues were $397 million for the quarter, up 121% year over year and 29% quarter over quarter. Government revenues came in at $486 million, up 52% from last year and 14% from last quarter.

Thus, the rise in U.S. commercial clientele indicated future growth potential, and an increase in government contracts strengthened barriers to entry. Banking on this optimism, Palantir’s projected earnings growth rate for the next year is a promising 42.5%.

AI Hardware and GPU Demand Boost NVIDIA’s Growth

NVIDIA’s competitive advantage in the AI hardware market, coupled with consistent demand for its CUDA software platform, is expected to drive growth. The recent green signal from the Trump administration allowing NVIDIA to ship H200 AI chips to “approved customers” in China is likely to boost growth.

Additionally, NVIDIA is well-positioned to sell its popular computing hardware, as global data center capital expenditures are projected to reach $3 trillion to $4 trillion annually by 2030, according to the company.

Meanwhile, incessant demand for NVIDIA’s innovative Blackwell chips and cloud graphics processing units (GPUs) has boosted its fiscal third-quarter 2026 revenues to $57 billion, up 62% year over year and 22% quarter over quarter, citing investor.nvidia.com.

What’s more, the company anticipates fiscal fourth-quarter 2026 revenues to reach about $65 billion, with a margin of plus or minus 2%. Due to all these positives, NVIDIA’s expected earnings growth rate for next year is an encouraging 52.4% (read more: NVIDIA or BigBear.ai: Which AI Stock Has Bigger Upside in 2026?).

Currently, NVIDIA and Micron sport a Zacks Rank #1 (Strong Buy), while Palantir has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

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