Barrick Gold (GOLD) closed the most recent trading day at $20.86, moving -1.28% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 1.48%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 3.02%.
Heading into today, shares of the gold and copper mining company had gained 1.44% over the past month, lagging the Basic Materials sector’s gain of 3.94% and outpacing the S&P 500’s gain of 1.23% 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, our latest consensus estimate is calling for revenue of $3.15 billion, up 15.89% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.30 per share and revenue of $13.24 billion. These totals would mark changes of +13.04% and +5.09%, 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. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.73% lower within the past month. GOLD is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that GOLD has a Forward P/E ratio of 16.25 right now. This represents a premium compared to its industry’s average Forward P/E of 11.02.
Also, we should mention that GOLD has a PEG ratio of 8.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. GOLD’s industry had an average PEG ratio of 2.95 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 187, which puts it in the bottom 27% 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.
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