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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 at $19.57 in the latest trading session, marking a +1.77% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.71%.

Heading into today, shares of the gold and copper mining company had lost 0.67% over the past month, outpacing the Basic Materials sector's loss of 2.46% and the S&P 500's loss of 2.25% in that time.

Investors will be hoping for strength from GOLD as it approaches its next earnings release, which is expected to be November 4, 2021. On that day, GOLD is projected to report earnings of $0.30 per share, which would represent a year-over-year decline of 26.83%. Our most recent consensus estimate is calling for quarterly revenue of $3.22 billion, down 9.09% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.24 per share and revenue of $12.4 billion. These totals would mark changes of +7.83% and -1.57%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 1.44% lower. GOLD is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that GOLD has a Forward P/E ratio of 15.56 right now. Its industry sports an average Forward P/E of 15.25, so we one might conclude that GOLD is trading at a premium comparatively.

It is also worth noting that GOLD currently has a PEG ratio of 7.78. 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. Mining - Gold stocks are, on average, holding a PEG ratio of 2.76 based on yesterday's closing prices.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 18% 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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