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

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Barrick Gold (GOLD - Free Report) closed the most recent trading day at $23.54, moving +0.09% from the previous trading session. This change outpaced the S&P 500's 0.04% gain on the day. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.28%.

Coming into today, shares of the gold and copper mining company had gained 4.81% in the past month. In that same time, the Basic Materials sector gained 14.62%, while the S&P 500 gained 3.84%.

GOLD will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2021. On that day, GOLD is projected to report earnings of $0.34 per share, which would represent year-over-year growth of 100%. Our most recent consensus estimate is calling for quarterly revenue of $3.11 billion, up 7.92% from the year-ago period.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.54% lower within the past month. GOLD currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, GOLD is holding a Forward P/E ratio of 17.8. Its industry sports an average Forward P/E of 11.33, so we one might conclude that GOLD is trading at a premium comparatively.

We can also see that GOLD currently has a PEG ratio of 8.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Mining - Gold was holding an average PEG ratio of 1.99 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 243, which puts it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow GOLD in the coming trading sessions, be sure to utilize Zacks.com.


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