Friday, February 13, 2015

Barrick Gold (ABX) Stock Higher Today on Rise in Gold Prices

NEW YORK (TheStreet) -- Shares of Barrick Gold Corp. are up by 1.07% to $12.26 in late morning trading on Friday, as some stocks within the gold and mining sectors advance today along with the price of the precious metal. Gold for April delivery is higher by 0.92% to $1,231.90 per ounce on the COMEX this morning. The yellow metal is in the green this morning as a result of a weaker dollar due to disappointing U.S. economic data on retail sales, Reuters reports. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Despite today's gain gold is still heading for a third week of losses as expectations of a hike in U.S. interest rates increase and Greece is anticipated to reach a deal with its creditors. "We are in a holding pattern between $1,150 and $1,300 just because there isn't enough clarity around when the Fed is going to be hiking interest rates and what is going to be happening with Greece," an ING senior bank strategist told Reuters. "So until we see what is going to happen in the long term, gold is likely to remain in this range," the strategist added. Separately, TheStreet Ratings team rates BARRICK GOLD CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: "We rate BARRICK GOLD CORP (ABX) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share." Highlights from the analysis by TheStreet Ratings Team goes as follows: The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 27.3% when compared to the same quarter one year ago, falling from $172.00 million to $125.00 million. Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 29.64%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 38.88% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now. Net operating cash flow has decreased to $852.00 million or 30.78% when compared to the same quarter last year. Despite a decrease in cash flow of 30.78%, BARRICK GOLD CORP is in line with the industry average cash flow growth rate of -38.98%. BARRICK GOLD CORP's earnings per share declined by 38.9% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BARRICK GOLD CORP reported poor results of -$9.63 versus -$0.35 in the prior year. This year, the market expects an improvement in earnings ($0.65 versus -$9.63). The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, BARRICK GOLD CORP's return on equity significantly trails that of both the industry average and the S&P 500. You can view the full analysis from the report here: ABX Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


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