Back to top

Image: Bigstock

Barrick Gold (GOLD) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Barrick Gold (GOLD - Free Report) closed at $23.77 in the latest trading session, marking a +0.55% move from the prior day. The stock lagged the S&P 500's daily gain of 2.14%. Meanwhile, the Dow gained 1.82%, and the Nasdaq, a tech-heavy index, lost 0.01%.

Coming into today, shares of the gold and copper mining company had gained 12.09% in the past month. In that same time, the Basic Materials sector gained 3.08%, while the S&P 500 lost 5.01%.

Barrick Gold will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.26, down 10.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.97 billion, up 0.46% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.14 per share and revenue of $11.88 billion. These totals would mark changes of -1.72% and -0.89%, respectively, from last year.

Any recent changes to analyst estimates for Barrick Gold should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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 1.11% higher within the past month. Barrick Gold currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Barrick Gold is holding a Forward P/E ratio of 20.83. This valuation marks a premium compared to its industry's average Forward P/E of 18.71.

It is also worth noting that GOLD currently has a PEG ratio of 10.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Gold industry currently had an average PEG ratio of 2.76 as of yesterday's close.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% 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.

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