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

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In the latest trading session, Barrick Gold (GOLD) closed at $15.41, marking a +0.92% move from the previous day. This change lagged the S&P 500's 2.62% gain on the day. Meanwhile, the Dow gained 1.37%, and the Nasdaq, a tech-heavy index, added 0.05%.

Heading into today, shares of the gold and copper mining company had lost 17.68% over the past month, lagging the Basic Materials sector's loss of 8.21% and the S&P 500's gain of 0.24% in that time.

Wall Street will be looking for positivity from Barrick Gold as it approaches its next earnings report date. This is expected to be August 8, 2022. In that report, analysts expect Barrick Gold to post earnings of $0.23 per share. This would mark a year-over-year decline of 20.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.07 billion, up 6.05% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.06 per share and revenue of $12.15 billion. These totals would mark changes of -8.62% and +1.34%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Barrick 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. 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, 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. Within the past 30 days, our consensus EPS projection has moved 11.58% lower. Barrick Gold is currently a Zacks Rank #3 (Hold).

Investors should also note Barrick Gold's current valuation metrics, including its Forward P/E ratio of 14.41. Its industry sports an average Forward P/E of 17.11, so we one might conclude that Barrick Gold is trading at a discount comparatively.

Meanwhile, GOLD's PEG ratio is currently 7.2. 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 Mining - Gold industry currently had an average PEG ratio of 4.56 as of yesterday's close.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 129, putting it in the bottom 49% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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