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

Zacks Equity Research

Barrick Gold (GOLD) closed at $16.39 in the latest trading session, marking a -0.79% move from the prior day. This change lagged the S&P 500's 0.23% gain on the day. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, lost 0.08%.

Heading into today, shares of the gold and copper mining company had gained 20.32% over the past month, outpacing the Basic Materials sector's gain of 4.19% and the S&P 500's gain of 3.84% in that time.

Investors will be hoping for strength from GOLD as it approaches its next earnings release. On that day, GOLD is projected to report earnings of $0.09 per share, which would represent year-over-year growth of 28.57%. Meanwhile, our latest consensus estimate is calling for revenue of $2.05 billion, up 19.89% from the prior-year quarter.

GOLD's full-year Zacks Consensus Estimates are calling for earnings of $0.39 per share and revenue of $8.27 billion. These results would represent year-over-year changes of +11.43% and +14.15%, respectively.

Investors should also note any recent changes to analyst estimates for GOLD. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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 1.71% higher. GOLD is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, GOLD is currently trading at a Forward P/E ratio of 42.05. This represents a premium compared to its industry's average Forward P/E of 35.23.

We can also see that GOLD currently has a PEG ratio of 21.03. 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 12.65 at yesterday's closing price.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% 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.

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

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