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

Zacks Equity Research

Barrick Gold (GOLD) closed the most recent trading day at $17.22, moving -1.09% from the previous trading session. This change lagged the S&P 500's 0.03% gain on the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.04%.

Coming into today, shares of the gold and copper mining company had lost 3.12% in the past month. In that same time, the Basic Materials sector gained 0.99%, while the S&P 500 gained 2.25%.

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 $0.15, up 87.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.35 billion, up 27.91% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.54 per share and revenue of $8.86 billion, which would represent changes of +54.29% and +22.26%, respectively, from the prior 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.31% higher. GOLD is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that GOLD has a Forward P/E ratio of 32.33 right now. This represents a premium compared to its industry's average Forward P/E of 29.86.

Meanwhile, GOLD's PEG ratio is currently 16.16. 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 7.08 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 12, putting it in the top 5% 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.

To follow GOLD in the coming trading sessions, be sure to utilize Zacks.com.


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