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

Zacks Equity Research

In the latest trading session, Barrick Gold (GOLD) closed at $27.02, marking a +1.54% move from the previous day. This move outpaced the S&P 500's daily loss of 1.08%. At the same time, the Dow lost 1.51%, and the tech-heavy Nasdaq lost 0.86%.

Coming into today, shares of the gold and copper mining company had gained 12.95% in the past month. In that same time, the Basic Materials sector lost 0.09%, while the S&P 500 lost 0.3%.

Investors will be hoping for strength from GOLD as it approaches its next earnings release. The company is expected to report EPS of $0.18, up 100% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.67 billion, up 29.47% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.79 per share and revenue of $11.83 billion. These totals would mark changes of +54.9% and +21.73%, respectively, from last year.

It is also important to note the 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.75% lower. GOLD is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, GOLD is currently trading at a Forward P/E ratio of 33.56. This valuation marks a premium compared to its industry's average Forward P/E of 27.63.

Meanwhile, GOLD's PEG ratio is currently 16.78. 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. GOLD's industry had an average PEG ratio of 2.87 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 70, which puts it in the top 28% 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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Zacks Investment Research