In the latest trading session, Barrick Gold (GOLD) closed at $17.30, marking a -1.14% move from the previous day. This change was narrower than the S&P 500’s daily loss of 1.45%. Meanwhile, the Dow lost 1.05%, and the Nasdaq, a tech-heavy index, lost 5.88%.
Heading into today, shares of the gold and copper mining company had gained 7.82% over the past month, lagging the Basic Materials sector’s gain of 12.86% and outpacing the S&P 500’s loss of 1.68% in that time.
Barrick Gold will be looking to display strength as it nears its next earnings release. In that report, analysts expect Barrick Gold to post earnings of $0.18 per share. This would mark a year-over-year decline of 48.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.15 billion, down 4.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.80 per share and revenue of $11.14 billion, which would represent changes of -31.03% and -7.08%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Barrick Gold. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.72% higher. Barrick Gold is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Barrick Gold’s current valuation metrics, including its Forward P/E ratio of 21.91. Its industry sports an average Forward P/E of 22.45, so we one might conclude that Barrick Gold is trading at a discount comparatively.
Also, we should mention that GOLD has a PEG ratio of 10.96. 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. GOLD’s industry had an average PEG ratio of 5.02 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 70, which puts it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2023? From inception in 2012 through November, the
Zacks Top 10 Stocks
portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%.
Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First to New Top 10 Stocks >>
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
