Barrick Gold (GOLD) Outpaces Stock Market Gains: What You Should Know
Barrick Gold (GOLD) closed the most recent trading day at $22.23, moving +1.14% from the previous trading session. This change outpaced the S&P 500's 0.36% gain on the day.
Prior to today's trading, shares of the gold and copper mining company had lost 0.09% over the past month. This has lagged the Basic Materials sector's gain of 5.95% and the S&P 500's gain of 5.21% in that time.
Investors will be hoping for strength from GOLD as it approaches its next earnings release, which is expected to be May 5, 2021. In that report, analysts expect GOLD to post earnings of $0.28 per share. This would mark year-over-year growth of 75%. Meanwhile, our latest consensus estimate is calling for revenue of $3.08 billion, up 13.35% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.24 per share and revenue of $12.5 billion, which would represent changes of +7.83% and -0.73%, respectively, from the prior year.
Any recent changes to analyst estimates for GOLD should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 4.42% lower within the past month. 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 16.99. Its industry sports an average Forward P/E of 11.7, so we one might conclude that GOLD is trading at a premium comparatively.
It is also worth noting that GOLD currently has a PEG ratio of 8.49. 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. The Mining - Gold industry currently had an average PEG ratio of 2.84 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 230, which puts it in the bottom 10% 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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