Barrick Gold (GOLD) closed the most recent trading day at $20.16, moving -0.4% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 0.55%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 2.01%.
Heading into today, shares of the gold and copper mining company had gained 0.4% over the past month, outpacing the Basic Materials sector’s loss of 3.27% and lagging the S&P 500’s gain of 0.84% in that time.
Wall Street will be looking for positivity from GOLD as it approaches its next earnings report date. The company is expected to report EPS of $0.30, up 87.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.15 billion, up 15.89% from the year-ago period.
GOLD’s full-year Zacks Consensus Estimates are calling for earnings of $1.30 per share and revenue of $13.24 billion. These results would represent year-over-year changes of +13.04% and +5.09%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 4.24% lower. GOLD is currently a Zacks Rank #3 (Hold).
In terms of valuation, GOLD is currently trading at a Forward P/E ratio of 15.57. This valuation marks a premium compared to its industry’s average Forward P/E of 10.64.
Also, we should mention that GOLD has a PEG ratio of 7.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Mining – Gold was holding an average PEG ratio of 2.71 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 167, which puts it in the bottom 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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