<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Barrick Gold Corporation GOLD looks promising at the moment. The company’s shares have gained around 10% so far this year.
We are positive regarding the company’s prospects and believe that the time is right for investors to add the stock to their portfolios as it looks promising and is poised to maintain the momentum.
Let’s see what makes this gold mining giant a compelling investment option at the moment.
An Outperformer
Barrick has significantly outperformed the industry in the past year. The company’s shares have rallied 50.2% compared with 27.5% rise of the industry. The company also outpaced the S&P 500’s decline of 8% for the same period.” data-reactid=”12″>Barrick Gold Corporation GOLD looks promising at the moment. The company’s shares have gained around 10% so far this year.
We are positive regarding the company’s prospects and believe that the time is right for investors to add the stock to their portfolios as it looks promising and is poised to maintain the momentum.
Let’s see what makes this gold mining giant a compelling investment option at the moment.
An Outperformer
Barrick has significantly outperformed the industry in the past year. The company’s shares have rallied 50.2% compared with 27.5% rise of the industry. The company also outpaced the S&P 500’s decline of 8% for the same period.
The coronavirus pandemic has led to a surge in gold prices, driven by the demand for safe-haven investments. Further, declining oil prices and geopolitical tensions are triggering demand for gold.
Moreover, the company’s average realized price of gold rose 21.3% year over year in fourth-quarter 2019 and boosted margins. Higher gold prices are expected to continue driving earnings in the near future amid market volatility and economic uncertainties.
Debt Cut & Strong Liquidity
Barrick is gaining from debt reduction. The company reduced its total debt by 3.2% year over year to $5.5 billion at the end of 2019. Also, it has a strong liquidity position and generates healthy cash flows, which positions it well to benefit from development, exploration and acquisition opportunities. At the end of 2019, Barrick’s cash and cash equivalents surged 111% year over year to $3.3 billion.
Key Growth Projects
Barrick is expected to benefit from major exploration programs. The company’s growth projects across Turquoise Ridge, Goldrush and Cortez Deep South in Nevada are currently in execution. Construction of the third shaft at Turquoise Ridge is advancing according to schedule and is expected to deliver additional value. The Deep South project is also expected to contribute to Cortez’s production this year. Also, the combination of Turquoise Ridge and Twin Creeks delivers a tier-one asset with another in the making at Goldrush. Notably, Turquoise Ridge significantly drove performance of the Nevada Gold Mines in fourth-quarter 2019.
Last month, Barrick also announced that the proposed expansion of the Pueblo Viejo gold mine will boost the mine life and also contribute to the economy of Dominican Republic till 2040 and beyond. The project will require an initial investment of $1.3 billion for expansion of the process plant and the tailings facility. The investment will extend the mine’s life and unlock potential to increase exports by $22 billion. The Pueblo Viejo expansion will also enable the mine to exploit the lower grades in the ore body.
Estimates Moving North
Earnings estimate revisions have the greatest impact on stock prices. Earnings estimates for Barrick for the first quarter and 2020 have moved up in the past two months. Over this period, the Zacks Consensus Estimate for first-quarter earnings moved up 5.6% while 2020 earnings estimates rose 4.3%. Further, the consensus mark for 2020 earnings is currently pegged at 72 cents per share, which suggests year-over-year growth of 41.2%.” data-reactid=”29″>
Higher Gold Prices
The coronavirus pandemic has led to a surge in gold prices, driven by the demand for safe-haven investments. Further, declining oil prices and geopolitical tensions are triggering demand for gold.
Moreover, the company’s average realized price of gold rose 21.3% year over year in fourth-quarter 2019 and boosted margins. Higher gold prices are expected to continue driving earnings in the near future amid market volatility and economic uncertainties.
Debt Cut & Strong Liquidity
Barrick is gaining from debt reduction. The company reduced its total debt by 3.2% year over year to $5.5 billion at the end of 2019. Also, it has a strong liquidity position and generates healthy cash flows, which positions it well to benefit from development, exploration and acquisition opportunities. At the end of 2019, Barrick’s cash and cash equivalents surged 111% year over year to $3.3 billion.
Key Growth Projects
Barrick is expected to benefit from major exploration programs. The company’s growth projects across Turquoise Ridge, Goldrush and Cortez Deep South in Nevada are currently in execution. Construction of the third shaft at Turquoise Ridge is advancing according to schedule and is expected to deliver additional value. The Deep South project is also expected to contribute to Cortez’s production this year. Also, the combination of Turquoise Ridge and Twin Creeks delivers a tier-one asset with another in the making at Goldrush. Notably, Turquoise Ridge significantly drove performance of the Nevada Gold Mines in fourth-quarter 2019.
Last month, Barrick also announced that the proposed expansion of the Pueblo Viejo gold mine will boost the mine life and also contribute to the economy of Dominican Republic till 2040 and beyond. The project will require an initial investment of $1.3 billion for expansion of the process plant and the tailings facility. The investment will extend the mine’s life and unlock potential to increase exports by $22 billion. The Pueblo Viejo expansion will also enable the mine to exploit the lower grades in the ore body.
Estimates Moving North
Earnings estimate revisions have the greatest impact on stock prices. Earnings estimates for Barrick for the first quarter and 2020 have moved up in the past two months. Over this period, the Zacks Consensus Estimate for first-quarter earnings moved up 5.6% while 2020 earnings estimates rose 4.3%. Further, the consensus mark for 2020 earnings is currently pegged at 72 cents per share, which suggests year-over-year growth of 41.2%.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Barrick Gold Corporation Price and Consensus” data-reactid=”30″>Barrick Gold Corporation Price and Consensus
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Zacks Rank & Other Key Picks
Barrick currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the basic materials space are Novagold Resources Inc. NG, Franco-Nevada Corporation FNV and Newmont Corporation NEM. While Novagold sports a Zacks Rank #1 (Strong Buy), Franco-Nevada and Newmont carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Novagold has an expected earnings growth rate of 11.1% for fiscal 2020. The company’s shares have surged 113.1% in the past year.
Franco-Nevada has an expected earnings growth rate of 17.6% for 2020. Its shares have returned 40.6% in the past year.
Newmont has an expected earnings growth rate of 83.3% for 2020. The company’s shares have gained 39.4% in the past year.
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See 8 breakthrough stocks now>>” data-reactid=”56″>Zacks Rank & Other Key Picks
Barrick currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the basic materials space are Novagold Resources Inc. NG, Franco-Nevada Corporation FNV and Newmont Corporation NEM. While Novagold sports a Zacks Rank #1 (Strong Buy), Franco-Nevada and Newmont carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Novagold has an expected earnings growth rate of 11.1% for fiscal 2020. The company’s shares have surged 113.1% in the past year.
Franco-Nevada has an expected earnings growth rate of 17.6% for 2020. Its shares have returned 40.6% in the past year.
Newmont has an expected earnings growth rate of 83.3% for 2020. The company’s shares have gained 39.4% in the past year.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.
Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.
“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.
Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.
Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.
Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.
In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.
The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.
And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
