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Barrick Gold (GOLD) Stock Sinks As Market Gains: What You Should Know

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Barrick Gold (GOLD - Free Report) closed at $28.72 in the latest trading session, marking a -0.66% move from the prior day. This change lagged the S&P 500's daily gain of 0.72%. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 1.47%.

Heading into today, shares of the gold and copper mining company had gained 10.05% over the past month, outpacing the Basic Materials sector's gain of 9.18% and the S&P 500's gain of 5.85% in that time.

GOLD will be looking to display strength as it nears its next earnings release, which is expected to be August 10, 2020. On that day, GOLD is projected to report earnings of $0.19 per share, which would represent year-over-year growth of 111.11%. Our most recent consensus estimate is calling for quarterly revenue of $2.66 billion, up 28.77% from the year-ago period.

GOLD's full-year Zacks Consensus Estimates are calling for earnings of $0.88 per share and revenue of $12.02 billion. These results would represent year-over-year changes of +72.55% and +23.7%, respectively.

Investors should also note any recent changes to analyst estimates for GOLD. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 10.45% higher. GOLD is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, GOLD currently has a Forward P/E ratio of 33.01. For comparison, its industry has an average Forward P/E of 26.63, which means GOLD is trading at a premium to the group.

Meanwhile, GOLD's PEG ratio is currently 16.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining - Gold was holding an average PEG ratio of 2.94 at yesterday's closing price.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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