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

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In the latest trading session, Barrick Gold (GOLD - Free Report) closed at $24.49, marking a +0.66% move from the previous day. This move outpaced the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 0.62%.

Coming into today, shares of the gold and copper mining company had gained 23.32% in the past month. In that same time, the Basic Materials sector gained 4.32%, while the S&P 500 lost 6.57%.

Barrick Gold will be looking to display strength as it nears its next earnings release. In that report, analysts expect Barrick Gold to post earnings of $0.26 per share. This would mark a year-over-year decline of 10.34%. Our most recent consensus estimate is calling for quarterly revenue of $2.97 billion, up 0.46% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.14 per share and revenue of $11.88 billion, which would represent changes of -1.72% and -0.89%, respectively, from the prior year.

Any recent changes to analyst estimates for Barrick Gold should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.78% higher. Barrick Gold is currently a Zacks Rank #3 (Hold).

Digging into valuation, Barrick Gold currently has a Forward P/E ratio of 21.44. This valuation marks a premium compared to its industry's average Forward P/E of 19.72.

Meanwhile, GOLD's PEG ratio is currently 10.72. 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. The Mining - Gold was holding an average PEG ratio of 2.8 at yesterday's closing price.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 36% 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.

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


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