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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 $18.02, moving -1.42% from the previous trading session. This move lagged the S&P 500's daily gain of 1.5%. At the same time, the Dow added 1.44%, and the tech-heavy Nasdaq gained 2.1%.

Heading into today, shares of the gold and copper mining company had lost 0.6% over the past month, outpacing the Basic Materials sector's loss of 6.26% and lagging the S&P 500's gain of 0.54% in that time.

Wall Street will be looking for positivity from GOLD as it approaches its next earnings report date. This is expected to be February 12, 2020. The company is expected to report EPS of $0.15, up 150% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.78 billion, up 46.04% from the year-ago period.

Investors might also notice recent changes to analyst estimates for GOLD. Recent revisions tend to reflect the latest near-term business trends. 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. 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, 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. The Zacks Consensus EPS estimate has moved 2.01% higher within the past month. GOLD currently has a Zacks Rank of #3 (Hold).

In terms of valuation, GOLD is currently trading at a Forward P/E ratio of 26.21. For comparison, its industry has an average Forward P/E of 14.91, which means GOLD is trading at a premium to the group.

It is also worth noting that GOLD currently has a PEG ratio of 13.1. 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 3.92 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 186, which puts it in the bottom 28% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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