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Barrick Gold (GOLD) Gains But Lags Market: What You Should Know

Barrick Gold (GOLD) closed the most recent trading day at $27.09, moving +0.15% from the previous trading session. This move lagged the S&P 500's daily gain of 0.91%. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 0.59%.

Heading into today, shares of the gold and copper mining company had gained 10.95% over the past month, outpacing the Basic Materials sector's gain of 8.73% and the S&P 500's gain of 5.26% in that time.

GOLD will be looking to display strength as it nears its next earnings release, which is expected to be August 10, 2020. The company is expected to report EPS of $0.18, up 100% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.66 billion, up 28.77% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.82 per share and revenue of $11.84 billion. These totals would mark changes of +60.78% and +21.88%, respectively, from last year.

Any recent changes to analyst estimates for GOLD should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 4.36% higher within the past month. GOLD is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, GOLD is holding a Forward P/E ratio of 32.93. Its industry sports an average Forward P/E of 28.76, so we one might conclude that GOLD is trading at a premium comparatively.

Meanwhile, GOLD's PEG ratio is currently 16.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GOLD's industry had an average PEG ratio of 3.06 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 89, which puts it in the top 36% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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