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 the most recent trading day at $18.18, moving +0.72% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.88%. Elsewhere, the Dow gained 1.43%, while the tech-heavy Nasdaq added 2.24%.

Coming into today, shares of the gold and copper mining company had gained 9.26% in the past month. In that same time, the Basic Materials sector lost 6.51%, while the S&P 500 lost 3.48%.

Wall Street will be looking for positivity from GOLD as it approaches its next earnings report date. This is expected to be August 12, 2019. On that day, GOLD is projected to report earnings of $0.10 per share, which would represent year-over-year growth of 42.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.09 billion, up 22.13% from the year-ago period.

GOLD's full-year Zacks Consensus Estimates are calling for earnings of $0.46 per share and revenue of $8.40 billion. These results would represent year-over-year changes of +31.43% and +15.99%, respectively.

Investors should also note any recent changes to analyst estimates for GOLD. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 18.18% higher within the past month. GOLD currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, GOLD is holding a Forward P/E ratio of 38.88. For comparison, its industry has an average Forward P/E of 36.97, which means GOLD is trading at a premium to the group.

Also, we should mention that GOLD has a PEG ratio of 19.44. 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. GOLD's industry had an average PEG ratio of 11.47 as of yesterday's close.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 15, putting it in the top 6% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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