Trade-Ideas LLC identified

Barrick Gold

(

ABX

) as a pre-market laggard 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 $301.5 million.
  • ABX traded 440,997 shares today in the pre-market hours as of 8:40 AM.
  • ABX is down 2% 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 0.4%. Currently there are 4 analysts that rate Barrick Gold a buy, 1 analyst rates it a sell, and 11 rate it a hold.

The average volume for Barrick Gold has been 20.6 million shares per day over the past 30 days. Barrick has a market cap of $22.0 billion and is part of the basic materials sector and metals & mining industry. Shares are up 162.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Barrick Gold as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, ABX's share price has jumped by 41.23%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The gross profit margin for BARRICK GOLD CORP is rather high; currently it is at 51.87%. It has increased from the same quarter the previous year.
  • BARRICK GOLD CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BARRICK GOLD CORP continued to lose money by earning -$2.44 versus -$2.49 in the prior year. This year, the market expects an improvement in earnings ($0.56 versus -$2.44).
  • 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 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 245.6% when compared to the same quarter one year ago, falling from $57.00 million to -$83.00 million.

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