Barrick Gold (GOLD) Stock Sinks As Market Gains: What You Should Know
Barrick Gold (GOLD) closed the most recent trading day at $20.70, moving -0.91% from the previous trading session. This change lagged the S&P 500's daily gain of 0.23%.
Prior to today's trading, shares of the gold and copper mining company had lost 13.25% over the past month. This has lagged the Basic Materials sector's loss of 2.56% and the S&P 500's gain of 2.34% in that time.
Wall Street will be looking for positivity from GOLD as it approaches its next earnings report date. In that report, analysts expect GOLD to post earnings of $0.26 per share. This would mark year-over-year growth of 13.04%. Our most recent consensus estimate is calling for quarterly revenue of $2.92 billion, down 4.4% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.21 per share and revenue of $12.37 billion, which would represent changes of +5.22% and -1.76%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for GOLD. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 2.91% higher. 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 17.2. This represents a premium compared to its industry's average Forward P/E of 14.08.
It is also worth noting that GOLD currently has a PEG ratio of 8.6. 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. The Mining - Gold was holding an average PEG ratio of 2.47 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 200, which puts it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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