Back to top

Image: Bigstock

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

Read MoreHide Full Article

Barrick Gold (GOLD - Free Report) closed at $18.10 in the latest trading session, marking a +0.44% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.41%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, added 0.13%.

Coming into today, shares of the gold and copper mining company had lost 0.83% in the past month. In that same time, the Basic Materials sector gained 4.05%, while the S&P 500 gained 2.36%.

Wall Street will be looking for positivity from Barrick Gold as it approaches its next earnings report date. In that report, analysts expect Barrick Gold to post earnings of $0.30 per share. This would mark a year-over-year decline of 14.29%. Meanwhile, our latest consensus estimate is calling for revenue of $3.32 billion, up 1.17% from the prior-year quarter.

Any recent changes to analyst estimates for Barrick Gold should also be noted by investors. Recent revisions tend to reflect the latest 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% lower. Barrick Gold is currently a Zacks Rank #3 (Hold).

Digging into valuation, Barrick Gold currently has a Forward P/E ratio of 15.88. This represents a premium compared to its industry's average Forward P/E of 12.54.

Investors should also note that GOLD has a PEG ratio of 7.94 right now. 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. The Mining - Gold industry currently had an average PEG ratio of 2.38 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 160, which puts it in the bottom 38% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Barrick Gold Corporation (GOLD) - free report >>

Published in