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

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Barrick Gold (GOLD) closed at $19.56 in the latest trading session, marking a +0.46% move from the prior day. This move lagged the S&P 500's daily gain of 1.46%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, lost 0.17%.

Prior to today's trading, shares of the gold and copper mining company had lost 4.89% over the past month. This has lagged the Basic Materials sector's loss of 3.64% and was narrower than the S&P 500's loss of 6.94% in that time.

Barrick Gold will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.29, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.16 billion, up 9.19% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.20 per share and revenue of $12.31 billion. These totals would mark changes of +3.45% and +2.68%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Barrick Gold. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.53% lower within the past month. Barrick Gold is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Barrick Gold is holding a Forward P/E ratio of 16.24. This represents a discount compared to its industry's average Forward P/E of 17.62.

It is also worth noting that GOLD currently has a PEG ratio of 8.12. 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 was holding an average PEG ratio of 2.79 at yesterday's closing price.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% 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.

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


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