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 gold standard methodology that helps guide their buying and selling decisions. One way to find winning stocks based on your preferred investing method is to use Zacks Style Scores, which are indicators that evaluate stocks based on three widely followed types of investing: value, growth and momentum.

Why Investors Should Pay Attention to This Value Stock

Value investors like to find good stocks at good prices, especially before the broader market realizes a stock’s true value. Using ratios such as 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 numerous advanced exploration and development projects spread across five continents.

GOLD sits at a Zacks Rank #1 (Strong Buy), holds a Value Style Score of B and a VGM Score of A. Compared to the Mining & Gold Industry’s P/E of 16X, Barrick’s stock Gold trades at a forward P/E of 16.1X. GOLD also has a PEG ratio of 0.4, a price-to-cash flow ratio of 8.6X, and a price-to-sales ratio of 2.6X.

A company’s earnings performance is also important to value investors. For fiscal 2024, seven analysts have revised their earnings estimates upward in the past 60 days for GOLD, while the Zacks Consensus Estimate has increased by $0.16 to $1.06 per share. GOLD also holds an average earnings surprise of 18.3%.

GOLD should be on investors’ short lists due to its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style scores.

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