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Barrick Gold Corporation (GOLD) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Barrick Gold (GOLD - Free Report) ? Shares have been on the move with the stock up 15.1% over the past month. The stock hit a new 52-week high of $19.45 in the previous session. Barrick Gold has gained 4.4% since the start of the year compared to the -1.1% move for the Zacks Basic Materials sector and the 23.4% return for the Zacks Mining - Gold industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 1, 2024, Barrick Gold reported EPS of $0.19 versus consensus estimate of $0.16 while it missed the consensus revenue estimate by 6.31%.
For the current fiscal year, Barrick Gold is expected to post earnings of $1.13 per share on $12.9 billion in revenues. This represents a 34.52% change in EPS on a 13.15% change in revenues. For the next fiscal year, the company is expected to earn $1.47 per share on $14.23 billion in revenues. This represents a year-over-year change of 30.35% and 10.35%, respectively.
Valuation Metrics
Barrick Gold may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Barrick Gold has a Value Score of A. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 16.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.5X. On a trailing cash flow basis, the stock currently trades at 9.4X versus its peer group's average of 10.5X. Additionally, the stock has a PEG ratio of 0.51. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Barrick Gold currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Barrick Gold passes the test. Thus, it seems as though Barrick Gold shares could still be poised for more gains ahead.
How Does GOLD Stack Up to the Competition?
Shares of GOLD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is B2Gold Corp (BTG - Free Report) . BTG has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. B2Gold Corp beat our consensus estimate by 20%, and for the current fiscal year, BTG is expected to post earnings of $0.28 per share on revenue of $1.87 billion.
Shares of B2Gold Corp have gained 19.1% over the past month, and currently trade at a forward P/E of 10.93X and a P/CF of 5.32X.
The Mining - Gold industry is in the top 14% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GOLD and BTG, even beyond their own solid fundamental situation.
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Barrick Gold Corporation (GOLD) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Barrick Gold (GOLD - Free Report) ? Shares have been on the move with the stock up 15.1% over the past month. The stock hit a new 52-week high of $19.45 in the previous session. Barrick Gold has gained 4.4% since the start of the year compared to the -1.1% move for the Zacks Basic Materials sector and the 23.4% return for the Zacks Mining - Gold industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 1, 2024, Barrick Gold reported EPS of $0.19 versus consensus estimate of $0.16 while it missed the consensus revenue estimate by 6.31%.
For the current fiscal year, Barrick Gold is expected to post earnings of $1.13 per share on $12.9 billion in revenues. This represents a 34.52% change in EPS on a 13.15% change in revenues. For the next fiscal year, the company is expected to earn $1.47 per share on $14.23 billion in revenues. This represents a year-over-year change of 30.35% and 10.35%, respectively.
Valuation Metrics
Barrick Gold may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Barrick Gold has a Value Score of A. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 16.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.5X. On a trailing cash flow basis, the stock currently trades at 9.4X versus its peer group's average of 10.5X. Additionally, the stock has a PEG ratio of 0.51. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Barrick Gold currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Barrick Gold passes the test. Thus, it seems as though Barrick Gold shares could still be poised for more gains ahead.
How Does GOLD Stack Up to the Competition?
Shares of GOLD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is B2Gold Corp (BTG - Free Report) . BTG has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. B2Gold Corp beat our consensus estimate by 20%, and for the current fiscal year, BTG is expected to post earnings of $0.28 per share on revenue of $1.87 billion.
Shares of B2Gold Corp have gained 19.1% over the past month, and currently trade at a forward P/E of 10.93X and a P/CF of 5.32X.
The Mining - Gold industry is in the top 14% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GOLD and BTG, even beyond their own solid fundamental situation.