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

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Barrick Gold (GOLD - Free Report) closed at $21.76 in the latest trading session, marking a +0.55% move from the prior day. This change outpaced the S&P 500's 0.09% loss on the day.

Heading into today, shares of the gold and copper mining company had gained 10.92% over the past month, outpacing the Basic Materials sector's gain of 9.87% and the S&P 500's gain of 5.45% 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 $0.26 per share. This would mark year-over-year growth of 62.5%. Our most recent consensus estimate is calling for quarterly revenue of $3.25 billion, up 19.42% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.25 per share and revenue of $12.89 billion. These totals would mark changes of +8.7% and +2.36%, 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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 4.07% lower within the past month. GOLD is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, GOLD currently has a Forward P/E ratio of 17.35. This valuation marks a premium compared to its industry's average Forward P/E of 13.19.

We can also see that GOLD currently has a PEG ratio of 8.68. 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. GOLD's industry had an average PEG ratio of 3.62 as of yesterday's close.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 245, which puts it in the bottom 4% 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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