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

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In the latest trading session, Barrick Gold (GOLD - Free Report) closed at $23.55, marking a +5.84% move from the previous day. This change outpaced the S&P 500's 0.82% gain on the day.

Coming into today, shares of the gold and copper mining company had gained 7.64% in the past month. In that same time, the Basic Materials sector gained 8.18%, while the S&P 500 gained 2.31%.

On that day, GOLD is projected to report earnings of $0.25 per share, which would represent year-over-year growth of 8.7%. Our most recent consensus estimate is calling for quarterly revenue of $3.03 billion, down 0.81% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.15 per share and revenue of $12.33 billion, which would represent changes of 0% and -2.08%, respectively, from the prior year.

Investors might also notice 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 9.87% lower within the past month. GOLD is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that GOLD has a Forward P/E ratio of 19.32 right now. This represents a premium compared to its industry's average Forward P/E of 13.35.

Meanwhile, GOLD's PEG ratio is currently 9.66. 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. Mining - Gold stocks are, on average, holding a PEG ratio of 3.75 based on yesterday's closing prices.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 249, which puts it in the bottom 2% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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