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

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Barrick Gold (GOLD - Free Report) closed at $17.87 in the latest trading session, marking a -1.05% move from the prior day. This change lagged the S&P 500's daily gain of 0.91%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 1.02%.

Coming into today, shares of the gold and copper mining company had gained 4.7% in the past month. In that same time, the Basic Materials sector lost 3.65%, while the S&P 500 lost 2.74%.

Investors will be hoping for strength from GOLD as it approaches its next earnings release. The company is expected to report EPS of $0.13, up 62.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.84 billion, up 54.56% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.54 per share and revenue of $9.94 billion, which would represent changes of +54.29% and +37.24%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for GOLD. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. GOLD currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that GOLD has a Forward P/E ratio of 33.52 right now. This valuation marks a premium compared to its industry's average Forward P/E of 32.85.

We can also see that GOLD currently has a PEG ratio of 16.76. 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 6.57 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 8, which puts it in the top 4% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow GOLD in the coming trading sessions, be sure to utilize Zacks.com.


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