Trade-Ideas LLC identified

Barrick Gold

(

ABX

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Barrick Gold as such a stock due to the following factors:

  • ABX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $360.9 million.
  • ABX traded 27,884 shares today in the pre-market hours as of 8:00 AM.
  • ABX is up 2.1% today from yesterday's close.

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More details on ABX:

Barrick Gold Corporation produces and sells gold and copper. The company is also involved in exploration and mine development activities. The stock currently has a dividend yield of 0.6%. Currently there are 5 analysts that rate Barrick Gold a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Barrick Gold has been 21.8 million shares per day over the past 30 days. Barrick has a market cap of $15.7 billion and is part of the basic materials sector and metals & mining industry. Shares are up 84% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Barrick Gold as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally high debt management risk.

Highlights from the ratings report include:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness 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.
  • The gross profit margin for BARRICK GOLD CORP is currently extremely low, coming in at 13.48%. Despite the low profit margin, it has increased significantly from the same period last year.
  • The debt-to-equity ratio of 1.39 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, ABX has managed to keep a strong quick ratio of 1.59, which demonstrates the ability to cover short-term cash needs.
  • Despite the weak revenue results, ABX has significantly outperformed against the industry average of 50.8%. Since the same quarter one year prior, revenues fell by 10.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The stock has risen over the past year at a faster pace than the S&P 500, reflecting the earnings growth of the company. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

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