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

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Barrick Gold (GOLD - Free Report) closed at $19.35 in the latest trading session, marking a -1.73% move from the prior day. This change lagged the S&P 500's daily loss of 0.77%.

Coming into today, shares of the gold and copper mining company had lost 1.8% in the past month. In that same time, the Basic Materials sector lost 2.98%, while the S&P 500 gained 1.55%.

Investors will be hoping for strength from GOLD as it approaches its next earnings release. On that day, GOLD is projected to report earnings of $0.32 per share, which would represent a year-over-year decline of 21.95%. Our most recent consensus estimate is calling for quarterly revenue of $3.26 billion, down 7.82% from the year-ago period.

GOLD's full-year Zacks Consensus Estimates are calling for earnings of $1.25 per share and revenue of $12.46 billion. These results would represent year-over-year changes of +8.7% and -1.1%, respectively.

Investors might also notice recent changes to analyst estimates for GOLD. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.15% higher. GOLD is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note GOLD's current valuation metrics, including its Forward P/E ratio of 15.7. Its industry sports an average Forward P/E of 14.58, so we one might conclude that GOLD is trading at a premium comparatively.

Also, we should mention that GOLD has a PEG ratio of 7.85. 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 2.8 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 188, which puts it in the bottom 26% 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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