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After Barrick (ABX) Earnings, Which Gold Mining Stocks Are Best Right Now?
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Shares of Barrick Gold Corp. , one of the largest gold mining companies in the world, are down about 2.15% in morning trading Thursday after the company failed to meet revenue expectations in its second-quarter earnings report.
After the closing bell Wednesday, Barrick announced earnings of 14 cents per share, which matched the Zacks Consensus Estimate; however, the company’s quarterly revenues of $2.01 billion just missed our estimate of $2.04 billion.
Gold has rode the wave of economic uncertainty throughout 2016, and many gold mining companies have benefitted from increased prices this year. We are right in the thick of a busy second-quarter earnings season, and with Barrick disappointing, the spotlight is firmly on the rest of the industry.
There’s still a plethora of gold miners still preparing to report, but for those investors looking to make a play in this area after Barrick’s announcement, check out these three stocks:
New Gold is one of the miners which has already announced its most recent earnings data, and its report impressed. The company’s EPS of 3 cents came in above the Zacks Consensus Estimate, which called for break-even earnings. With an “A” grade in the Growth category of our Style Scores system, New Gold has proved its ability to post near-highs for earnings growth this year.
Franco-Nevada is getting set to report on August 8, and its estimate revision activity is looking favorable heading into the announcement. In the last 30 days, we have seen four positive revisions for the company’s second-quarter earnings, and the Zacks Consensus Estimate is now a penny higher than it was last month. After an earnings beat of over 30% last quarter, Franco-Nevada will hope to continue its solid run.
Sandstorm is also preparing for an earnings announcement, and we expect the company to report on August 4. This quarter, Sandstorm could be in store for earnings growth of over 100% year-over-year. The company also has a positive Earnings ESP of 100%. With a positive Earnings ESP and a solid Zacks Rank, investors should feel more comfortable about an earnings beat. Speaking of earnings beats, Sandstorm also posted a surprise beat last quarter and smashed the Zacks Consensus Estimate by 500%.
Bottom Line
While Barrick’s report may have disappointed some investors, it’s important to consider that ABX isn’t the only option in the mining industry. In fact, gold mining is an extremely hot industry, falling into the top 3% of the Zacks Industry Rank. These Zacks Rank #1 (Strong Buy) stocks stick out, but there are over 20 companies with a Zacks Rank #2 (Buy) or higher in the industry right now.
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After Barrick (ABX) Earnings, Which Gold Mining Stocks Are Best Right Now?
Shares of Barrick Gold Corp. , one of the largest gold mining companies in the world, are down about 2.15% in morning trading Thursday after the company failed to meet revenue expectations in its second-quarter earnings report.
After the closing bell Wednesday, Barrick announced earnings of 14 cents per share, which matched the Zacks Consensus Estimate; however, the company’s quarterly revenues of $2.01 billion just missed our estimate of $2.04 billion.
Gold has rode the wave of economic uncertainty throughout 2016, and many gold mining companies have benefitted from increased prices this year. We are right in the thick of a busy second-quarter earnings season, and with Barrick disappointing, the spotlight is firmly on the rest of the industry.
There’s still a plethora of gold miners still preparing to report, but for those investors looking to make a play in this area after Barrick’s announcement, check out these three stocks:
1. New Gold Inc (NGD - Free Report) –Zacks Rank #1 (Strong Buy)
New Gold is one of the miners which has already announced its most recent earnings data, and its report impressed. The company’s EPS of 3 cents came in above the Zacks Consensus Estimate, which called for break-even earnings. With an “A” grade in the Growth category of our Style Scores system, New Gold has proved its ability to post near-highs for earnings growth this year.
2. Franco-Nevada Corp. (FNV - Free Report) –Zacks Rank #1 (Strong Buy)
Franco-Nevada is getting set to report on August 8, and its estimate revision activity is looking favorable heading into the announcement. In the last 30 days, we have seen four positive revisions for the company’s second-quarter earnings, and the Zacks Consensus Estimate is now a penny higher than it was last month. After an earnings beat of over 30% last quarter, Franco-Nevada will hope to continue its solid run.
3. Sandstorm Gold (SAND - Free Report) –Zacks Rank #1 (Strong Buy)
Sandstorm is also preparing for an earnings announcement, and we expect the company to report on August 4. This quarter, Sandstorm could be in store for earnings growth of over 100% year-over-year. The company also has a positive Earnings ESP of 100%. With a positive Earnings ESP and a solid Zacks Rank, investors should feel more comfortable about an earnings beat. Speaking of earnings beats, Sandstorm also posted a surprise beat last quarter and smashed the Zacks Consensus Estimate by 500%.
Bottom Line
While Barrick’s report may have disappointed some investors, it’s important to consider that ABX isn’t the only option in the mining industry. In fact, gold mining is an extremely hot industry, falling into the top 3% of the Zacks Industry Rank. These Zacks Rank #1 (Strong Buy) stocks stick out, but there are over 20 companies with a Zacks Rank #2 (Buy) or higher in the industry right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>