Barrick Gold Corporation (GOLD) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Barrick Gold (GOLD)? Shares have been on the move with the stock up 3.2% over the past month. The stock hit a new 52-week high of $21.35 in the previous session. Barrick Gold has gained 15.3% since the start of the year compared to the 2.4% move for the Zacks Basic Materials sector and the 37.7% return for the Zacks Mining - Gold industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 12, 2024, Barrick Gold reported EPS of $0.32 versus consensus estimate of $0.26 while it beat the consensus revenue estimate by 4.85%.For the current fiscal year, Barrick Gold is expected to post earnings of $1.27 per share on $13.24 billion in revenues. This represents a 51.19% change in EPS on a 16.17% change in revenues. For the next fiscal year, the company is expected to earn $1.76 per share on $15.77 billion in revenues. This represents a year-over-year change of 38.47% and 19.1%, respectively.Valuation MetricsBarrick Gold may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Barrick Gold has a Value Score of A. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 16.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.4X. On a trailing cash flow basis, the stock currently trades at 10.4X versus its peer group's average of 11.1X. Additionally, the stock has a PEG ratio of 0.5. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Barrick Gold currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Barrick Gold passes the test. Thus, it seems as though Barrick Gold shares could have a bit more room to run in the near term.How Does GOLD Stack Up to the Competition?Shares of GOLD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Agnico Eagle Mines Limited (AEM). AEM has a Zacks Rank of # 1 (Strong Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of B.Earnings were strong last quarter. Agnico Eagle Mines Limited beat our consensus estimate by 15.05%, and for the current fiscal year, AEM is expected to post earnings of $3.88 per share on revenue of $7.98 billion.Shares of Agnico Eagle Mines Limited have gained 4.9% over the past month, and currently trade at a forward P/E of 22.3X and a P/CF of 16.65X.The Mining - Gold industry is in the top 9% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GOLD and AEM, even beyond their own solid fundamental situation.Infrastructure Stock Boom to Sweep AmericaA massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.The only question is “Will you get into the right stocks early when their growth potential is greatest?”Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How To Profit From Trillions On Spending For Infrastructure >>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 Barrick Gold Corporation (GOLD): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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