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Here's Why Barrick Gold (GOLD) Fell More Than Broader Market

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Barrick Gold (GOLD - Free Report) ended the recent trading session at $15.17, demonstrating a -1.56% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.32%. Elsewhere, the Dow saw a downswing of 0.71%, while the tech-heavy Nasdaq depreciated by 0.2%.

Shares of the gold and copper mining company witnessed a loss of 11.89% over the previous month, trailing the performance of the Basic Materials sector with its loss of 6.21% and the S&P 500's gain of 4.59%.

Investors will be eagerly watching for the performance of Barrick Gold in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 14, 2024. The company is forecasted to report an EPS of $0.22, showcasing a 69.23% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $3.13 billion, indicating a 12.89% upward movement from the same quarter last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Barrick Gold. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.39% lower. Barrick Gold is currently a Zacks Rank #3 (Hold).

In the context of valuation, Barrick Gold is at present trading with a Forward P/E ratio of 14.58. This expresses a discount compared to the average Forward P/E of 16.57 of its industry.

One should further note that GOLD currently holds a PEG ratio of 1.02. 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. The average PEG ratio for the Mining - Gold industry stood at 1.02 at the close of the market yesterday.

The Mining - Gold industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 184, finds itself in the bottom 27% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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