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

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Barrick Gold (GOLD - Free Report) closed the most recent trading day at $15.81, moving +0.44% from the previous trading session. This move lagged the S&P 500's daily gain of 1.06%. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 1.2%.

The gold and copper mining company's shares have seen a decrease of 5.41% over the last month, not keeping up with the Basic Materials sector's loss of 4.64% and the S&P 500's loss of 3%.

The upcoming earnings release of Barrick Gold will be of great interest to investors. In that report, analysts expect Barrick Gold to post earnings of $0.23 per share. This would mark year-over-year growth of 76.92%. Meanwhile, the latest consensus estimate predicts the revenue to be $3 billion, indicating a 18.67% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.87 per share and a revenue of $11.88 billion, indicating changes of +16% and +7.85%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Barrick Gold. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.45% lower. As of now, Barrick Gold holds a Zacks Rank of #3 (Hold).

In terms of valuation, Barrick Gold is currently trading at a Forward P/E ratio of 18.03. This indicates a discount in contrast to its industry's Forward P/E of 19.47.

It's also important to note that GOLD currently trades at a PEG ratio of 1.46. 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. The Mining - Gold was holding an average PEG ratio of 1.9 at yesterday's closing price.

The Mining - Gold industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 190, placing it within the bottom 25% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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