Barrick Gold (ABX) Stock Closed Lower Today as Gold Prices Declined

NEW YORK (TheStreet) -- Shares of Barrick Gold Corp. (ABX) finished down by 3.87% to $11.93 on Tuesday afternoon, as gold mining and producing stocks slumped due to the drop in gold prices.

Gold for February delivery fell by 1.5%, or $18.70, settling at $1,199.40 per ounce this afternoon, reversing Monday's gains which saw the price of the precious metal close above $1,200 for the first time since October, MarketWatch reports.

Gold prices declined today as the dollar improved. As the dollar grows stronger dollar-dominated commodities become less attractive, and more costly for those that hold other currencies, MarketWatch added.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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 multiple 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.
  • The share price of BARRICK GOLD CORP has not done very well: it is down 20.24% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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 BARRICK GOLD CORP is still fairing well by exceeding its industry average cash flow growth rate of -55.16%.
  • 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 ($0.69 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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