In the latest trading session, Barrick Gold (GOLD) closed at $28.23, marking a +0.39% move from the previous day. This change outpaced the S&P 500’s 0.17% gain on the day. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq lost 0.81%.
Prior to today’s trading, shares of the gold and copper mining company had gained 10.49% over the past month. This has lagged the Basic Materials sector’s gain of 11.59% and outpaced the S&P 500’s gain of 5.15% in that time.
GOLD will be looking to display strength as it nears its next earnings release, which is expected to be August 10, 2020. In that report, analysts expect GOLD to post earnings of $0.19 per share. This would mark year-over-year growth of 111.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.66 billion, up 28.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.84 per share and revenue of $12.02 billion, which would represent changes of +64.71% and +23.7%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for GOLD. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 5.95% higher within the past month. GOLD is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, GOLD is currently trading at a Forward P/E ratio of 33.48. Its industry sports an average Forward P/E of 29.17, so we one might conclude that GOLD is trading at a premium comparatively.
Also, we should mention that GOLD has a PEG ratio of 16.74. 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. The Mining – Gold was holding an average PEG ratio of 3.1 at yesterday’s closing price.
The Mining – Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Zacks Investment Research