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In the latest market close, Barrick Gold (GOLD) reached $15.84, with a +1.73% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.06%.
Heading into today, shares of the gold and copper mining company had lost 10.15% over the past month, lagging the Basic Materials sector's loss of 9.84% and the S&P 500's loss of 2.7% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Barrick Gold in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.46, reflecting a 70.37% increase from the same quarter last year.
It is also important to note the recent changes to analyst estimates for Barrick Gold. Such recent modifications usually signify the changing landscape 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.57% higher. At present, Barrick Gold boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Barrick Gold is holding a Forward P/E ratio of 8.94. This denotes a discount relative to the industry's average Forward P/E of 10.44.
It is also worth noting that GOLD currently has a PEG ratio of 0.28. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Mining - Gold industry stood at 0.5 at the close of the market yesterday.
The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 163, positioning it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.