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

Zacks Equity Research

Barrick Gold (GOLD) closed at $16.76 in the latest trading session, marking a +0.24% move from the prior day. This change outpaced the S&P 500's 0.08% loss on the day. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.59%.

Heading into today, shares of the gold and copper mining company had lost 3.52% over the past month, lagging the Basic Materials sector's gain of 1.15% and the S&P 500's gain of 2.7% in that time.

GOLD will be looking to display strength as it nears its next earnings release, which is expected to be November 6, 2019. On that day, GOLD is projected to report earnings of $0.10 per share, which would represent year-over-year growth of 25%. Meanwhile, our latest consensus estimate is calling for revenue of $2.62 billion, up 42.61% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.52 per share and revenue of $9.84 billion. These totals would mark changes of +48.57% and +35.88%, respectively, from last 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.

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 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. Within the past 30 days, our consensus EPS projection has moved 0.72% higher. GOLD is currently a Zacks Rank #3 (Hold).

Digging into valuation, GOLD currently has a Forward P/E ratio of 32.08. This valuation marks a discount compared to its industry's average Forward P/E of 33.38.

Investors should also note that GOLD has a PEG ratio of 16.04 right now. 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. Mining - Gold stocks are, on average, holding a PEG ratio of 6.94 based on yesterday's closing prices.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% 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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