Here’s Why Barrick Gold (GOLD) is a Strong Value Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock’s true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Barrick Gold (GOLD)
Barrick Gold Corporation, based in Toronto, Canada, is one of the largest gold mining companies in the world. The company has many advanced exploration and development projects located across five continents. GOLD sits at a Zacks Rank #1 (Strong Buy), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Mining – Gold industry’s P/E of 16X, shares of Barrick Gold are trading at a forward P/E of 16.1X. GOLD also has a PEG Ratio of 0.4, a Price/Cash Flow ratio of 8.6X, and a Price/Sales ratio of 2.6X.
A company’s earnings performance is important for value investors as well. For fiscal 2024, seven analysts revised their earnings estimate higher in the last 60 days for GOLD, while the Zacks Consensus Estimate has increased $0.16 to $1.06 per share. GOLD also holds an average earnings surprise of 18.3%.
GOLD should be on investors’ short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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