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Barrick Gold (GOLD) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·3 min read

Barrick Gold (GOLD) closed the most recent trading day at $23.24, moving +1.44% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.13%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.15%.

Prior to today's trading, shares of the gold and copper mining company had lost 3.86% over the past month. This has lagged the Basic Materials sector's gain of 6.1% and the S&P 500's gain of 2.59% in that time.

Wall Street will be looking for positivity from GOLD as it approaches its next earnings report date. The company is expected to report EPS of $0.34, up 100% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.11 billion, up 7.92% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.10 per share and revenue of $12.55 billion, which would represent changes of +115.69% and +29.13%, 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 1.15% lower. GOLD currently has a Zacks Rank of #4 (Sell).

In terms of valuation, GOLD is currently trading at a Forward P/E ratio of 20.8. This represents a premium compared to its industry's average Forward P/E of 19.27.

Investors should also note that GOLD has a PEG ratio of 10.4 right now. 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. Mining - Gold stocks are, on average, holding a PEG ratio of 2.61 based on yesterday's closing prices.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Zacks Investment Research