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

Zacks Equity Research

Barrick Gold (GOLD) closed the most recent trading day at $16.94, moving +1.68% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.3%.

Coming into today, shares of the gold and copper mining company had lost 7.55% in the past month. In that same time, the Basic Materials sector lost 4.72%, while the S&P 500 lost 0.25%.

GOLD will be looking to display strength as it nears its next earnings release, which is expected to be November 6, 2019. The company is expected to report EPS of $0.13, up 62.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.86 billion, up 55.42% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.54 per share and revenue of $9.95 billion. These totals would mark changes of +54.29% and +37.4%, 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 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.5% higher. GOLD currently has a Zacks Rank of #3 (Hold).

Investors should also note GOLD's current valuation metrics, including its Forward P/E ratio of 30.78. This represents a premium compared to its industry's average Forward P/E of 29.88.

Investors should also note that GOLD has a PEG ratio of 15.39 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Mining - Gold was holding an average PEG ratio of 5.98 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 11, which puts it in the top 5% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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