Barrick Gold (GOLD) Gains As Market Dips: What You Should Know
In the latest trading session, Barrick Gold (GOLD) closed at $18, marking a +1.75% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.65%. Elsewhere, the Dow lost 1.63%, while the tech-heavy Nasdaq lost 6.65%.
Heading into today, shares of the gold and copper mining company had gained 6.63% over the past month, outpacing the Basic Materials sector's loss of 2.51% and the S&P 500's gain of 0.3% in that time.
Barrick Gold will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.17, down 34.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.21 billion, up 12.43% from the year-ago period.
GOLD's full-year Zacks Consensus Estimates are calling for earnings of $0.89 per share and revenue of $11.62 billion. These results would represent year-over-year changes of +18.67% and +5.54%, respectively.
Investors should also note any recent changes to analyst estimates for Barrick Gold. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 0.65% higher. Barrick Gold currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Barrick Gold is holding a Forward P/E ratio of 19.88. This represents a premium compared to its industry's average Forward P/E of 18.73.
It is also worth noting that GOLD currently has a PEG ratio of 9.94. 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. GOLD's industry had an average PEG ratio of 3.08 as of yesterday's close.
The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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