In the latest trading session, Barrick Gold (GOLD) closed at $27.96, marking a -0.29% move from the previous day. This move was narrower than the S&P 500’s daily loss of 0.63%. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the gold and copper mining company had lost 6.31% over the past month, lagging the Basic Materials sector’s gain of 0.91% and the S&P 500’s gain of 5.91% in that time.
Wall Street will be looking for positivity from GOLD as it approaches its next earnings report date. This is expected to be November 5, 2020. In that report, analysts expect GOLD to post earnings of $0.32 per share. This would mark year-over-year growth of 113.33%. Meanwhile, our latest consensus estimate is calling for revenue of $3.25 billion, up 21.46% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.99 per share and revenue of $12.44 billion. These totals would mark changes of +94.12% and +28.04%, respectively, from last year.
Any recent changes to analyst estimates for GOLD should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 4.94% higher within the past month. GOLD currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, GOLD is holding a Forward P/E ratio of 28.28. This valuation marks a premium compared to its industry’s average Forward P/E of 19.07.
We can also see that GOLD currently has a PEG ratio of 14.14. 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 industry currently had an average PEG ratio of 2.15 as of yesterday’s close.
The Mining – Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 102, putting it in the top 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.
To follow GOLD in the coming trading sessions, be sure to utilize Zacks.com.
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