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Barrick Gold (GOLD) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Barrick Gold (GOLD - Free Report) closed at $17.03, marking a -1.84% move from the previous day. This move lagged the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1%.

Heading into today, shares of the gold and copper mining company had gained 9.39% over the past month, outpacing the Basic Materials sector's gain of 1.25% and the S&P 500's gain of 2.68% in that time.

Investors will be hoping for strength from GOLD as it approaches its next earnings release, which is expected to be August 12, 2019. In that report, analysts expect GOLD to post earnings of $0.10 per share. This would mark year-over-year growth of 42.86%. Our most recent consensus estimate is calling for quarterly revenue of $2.09 billion, up 22.13% from the year-ago period.

GOLD's full-year Zacks Consensus Estimates are calling for earnings of $0.44 per share and revenue of $8.40 billion. These results would represent year-over-year changes of +25.71% and +15.99%, respectively.

It is also important to note the recent changes to analyst estimates for GOLD. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 12.45% higher within the past month. GOLD is currently a Zacks Rank #2 (Buy).

Investors should also note GOLD's current valuation metrics, including its Forward P/E ratio of 39.56. This represents a premium compared to its industry's average Forward P/E of 32.54.

Investors should also note that GOLD has a PEG ratio of 19.78 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Mining - Gold stocks are, on average, holding a PEG ratio of 12.16 based on yesterday's closing prices.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% 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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