Barrick Gold (GOLD) closed at $18.36 in the latest trading session, marking a -0.81% move from the prior day. This move was narrower than the S&P 500’s daily loss of 0.91%.
Prior to today’s trading, shares of the gold and copper mining company had lost 3.24% over the past month. This has was narrower than the Basic Materials sector’s loss of 5.78% and lagged the S&P 500’s gain of 0.01% 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 $0.32, down 21.95% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.26 billion, down 7.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.25 per share and revenue of $12.46 billion. These totals would mark changes of +8.7% and -1.1%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for 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.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.15% higher. GOLD is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that GOLD has a Forward P/E ratio of 14.76 right now. This valuation marks a premium compared to its industry’s average Forward P/E of 13.95.
We can also see that GOLD currently has a PEG ratio of 7.38. 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 industry currently had an average PEG ratio of 2.58 as of yesterday’s close.
The Mining – Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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