The Reason To Stay Long On Barrick Gold Corporation (GOLD)

The median price target for Barrick Gold Corporation, (GOLD) over the next 12 months is $20.32, which means that it could rise by 15.59% from its current position. Despite that, some analysts believe that it won’t perform excellent, setting a lower price target of $16.58 for the stock which means it could rise by -5.69%. Most analysts believe that the company’s stock has the potential to rise by 36.52% or more. For Barrick Gold Corporation to record further gain analysts believe that the company has to hit $24 price target. The high price target for GOLD for next 12 months currently stands at $24. This means that the highest 12 months price target is 36.52% above its last closing price. For most investors, the 0.11% change in the share price could have prompted them to buy the stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock. The stock closed December 13, 2019 trading at $17.58 which saw downtrend of 29.84% since the beginning of 2019. The price of the stock has risen by 16.1% from average 12-month price target of $20.41 expected by the analysts.

A look at the GOLD stock today shows that it has gained 24.59% of its value over the past one year, which has led to some investors becoming excited about the short-term performance of Barrick Gold Corporation (NYSE:GOLD). If we turn to the stock analysts in general, they revealed that most of them are still bullish about the chances of the shares. The consensus rating from analysts for Barrick Gold Corporation (GOLD) is 2.4 which is a ,neutral rating. Over the past week, the stock has been rated as a Buy 12 times while it has been rated as a Hold 5 times. The 52-week high price for GOLD is $20.07 which is attained on August 28 while its 52-week low currently stands at $11.52 and was reached on January 22. At the moment, the stock is trading $2.42 above its YTD moving average set at $15.16.

Moving on, Barrick Gold Corporation (GOLD) last released its earnings for the September 2019 quarter of the fiscal year. The company performed lower over the past three months, with its earnings down -143% year-over-year at $0.15. The company brought a surprise of 50 as analysts were predicting $0.1 per share. The revenue generated by Barrick Gold Corporation in the September 2019 quarter surged by 46% to reach $2.68 billion. This is high compared to the $1.84 billion it recorded in the same quarter last year. To see what traders should watch in its December 2019 financial results, analysts have consensus earnings per share of $0.16 which is higher than the $0.06 recorded in the same quarter a year ago. Over the next 12 months, the earnings per share are expected to move by 39.73%. If it achieves that, then the company firmly believes that its long-term annual earnings growth rate target set at 26.29 % could be achieved. The company has also recorded a revenue of $8.74 billion over the past 12 months.

In order to determine if the stock is worthy of your patience, you should know that Barrick Gold Corporation (NYSE:GOLD) is now trading at 39.51X the earnings per share recorded over the past 12 months. This is an uptrend compared to the readings of the sector which is 35.26X while the industry average stands at 48.02X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. Barrick Gold Corporation was able to achieve an EPS of $0.45 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.

On Friday, December 13 of 2019, the 14-day Absolute ATR (Average True Range) for GOLD moved by $0.43. Over the past seven days, the stock’s average daily volatility stood at 2.56%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. Barrick Gold Corporation’s trading volume has recently moved to 10.52 million, which is compared with the average daily volume of 12.55 million shares.

The daily chart for GOLD, points out that the company has recorded 24.24% gains over the past six months. However, it is still 52.6% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is up 4.09% though it is 3.87% above its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has surged by 3.59% while it is up 12.46% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of GOLD reveals that it has gained some grounds as it ended Friday with a 5.52% rise over the past 30 days.