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

In the latest trading session, Barrick Gold (GOLD) closed at $21.21, marking a +0.24% move from the previous day. This change lagged the S&P 500's 0.77% gain on the day.

Heading into today, shares of the gold and copper mining company had gained 2.73% over the past month, lagging the Basic Materials sector's gain of 6.33% and the S&P 500's gain of 7.34% in that time.

Investors will be hoping for strength from GOLD as it approaches its next earnings release. The company is expected to report EPS of $0.30, up 87.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.15 billion, up 15.89% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.28 per share and revenue of $12.99 billion, which would represent changes of +11.3% and +3.14%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for GOLD. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.73% lower. GOLD is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, GOLD is holding a Forward P/E ratio of 16.18. This valuation marks a premium compared to its industry's average Forward P/E of 11.04.

Investors should also note that GOLD has a PEG ratio of 8.09 right now. 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 2.86 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 228, which puts it in the bottom 11% 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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