Barrick Gold (ABX) Stock Falls on Lower Gold Prices
NEW YORK (TheStreet) -- Shares of Barrick Gold (ABX) are slumping 3.54% to $22.34 in late-afternoon trading on Thursday as lower gold prices weigh on the Canadian gold producer.
Gold for August delivery is declining 0.40% to $1,361.70 per ounce on the COMEX this afternoon.
The precious metal is under pressure as the dollar strengthens today, making dollar-denominated commodities such as gold more expensive to foreign buyers.
For shares of Barrick Gold in particular, upside is limited in the current "macro risk environment," UBS wrote in a note cited by Barron's.
The firm's "neutral" rating on the stock is driven by declining production growth and potential government stimulus to stabilize macro risk.
If there is an upside, it would include market perception shifting toward expectations of further policy easing, UBS noted.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Barrick Gold's strengths such as its solid stock price performance, expanding profit margins and good cash flow from operations are countered by weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
You can view the full analysis from the report here: ABX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.