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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 $16.57, moving -0.18% from the previous trading session. This move lagged the S&P 500's daily gain of 0.29%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.19%.

Coming into today, shares of the gold and copper mining company had lost 11.75% in the past month. In that same time, the Basic Materials sector lost 3.13%, while the S&P 500 gained 0.32%.

Wall Street will be looking for positivity from GOLD as it approaches its next earnings report date. This is expected to be November 6, 2019. On that day, GOLD is projected to report earnings of $0.11 per share, which would represent year-over-year growth of 37.5%. Meanwhile, our latest consensus estimate is calling for revenue of $2.62 billion, up 42.61% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.53 per share and revenue of $9.84 billion. These totals would mark changes of +51.43% and +35.88%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for GOLD. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.82% lower. GOLD is currently a Zacks Rank #3 (Hold).

Digging into valuation, GOLD currently has a Forward P/E ratio of 31.4. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 31.4.

Meanwhile, GOLD's PEG ratio is currently 15.7. 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. GOLD's industry had an average PEG ratio of 6.28 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 16, which puts it in the top 7% 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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