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Barrick Gold (GOLD) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Barrick Gold (GOLD - Free Report) closed at $22.41, marking a -1.45% move from the previous day. This change lagged the S&P 500's daily loss of 0.92%.

Prior to today's trading, shares of the gold and copper mining company had gained 10.67% over the past month. This has outpaced the Basic Materials sector's gain of 8.34% and the S&P 500's gain of 6.83% in that time.

Investors will be hoping for strength from GOLD as it approaches its next earnings release, which is expected to be May 5, 2021. In that report, analysts expect GOLD to post earnings of $0.27 per share. This would mark year-over-year growth of 68.75%. Our most recent consensus estimate is calling for quarterly revenue of $3.08 billion, up 13.35% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.21 per share and revenue of $12.46 billion. These totals would mark changes of +5.22% and -1.1%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for GOLD. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.31% lower. GOLD is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, GOLD is currently trading at a Forward P/E ratio of 18.59. This represents a premium compared to its industry's average Forward P/E of 12.45.

It is also worth noting that GOLD currently has a PEG ratio of 9.29. 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 industry currently had an average PEG ratio of 3.46 as of yesterday's close.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 7% 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.

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


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