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Barrick Gold (GOLD) Stock Jumps 8.7%: Will It Continue to Soar?

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Barrick Gold (GOLD - Free Report) shares rallied 8.7% in the last trading session to close at $20.17. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.9% gain over the past four weeks.

GOLD’s shares shot up after it reported a 10% increase in its preliminary gold production on a sequential comparison basis on the back of strong performance from Carlin and Cortez mines. The company reported preliminary fourth-quarter production of 1.20 million ounces of gold and 126 million pounds of copper. It also reported preliminary fourth-quarter sales of 1.23 million ounces of gold and 113 million pounds of copper. Preliminary copper production was also higher sequentially, helped by increased throughput levels at Lumwana. All-in sustaining costs per ounce for gold are projected to be 4-6% lower than third-quarter levels. Gold cost of sales per ounce is projected to be 3-5% lower sequentially. The company also met its annual guidance targets for the third straight year. It recorded preliminary gold production for the full year of 4.44 million ounces, within its 4.4-4.7 million guidance range.

This gold and copper mining company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of -14.3%. Revenues are expected to be $3.32 billion, up 1.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Barrick Gold, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on GOLD going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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