Barrick Gold (ABX) Is Today's Pre-Market Laggard Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 $176.6 million.
  • ABX traded 97,059 shares today in the pre-market hours as of 8:37 AM.
  • ABX is down 2.4% today from yesterday's close.

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More details on ABX:

Barrick Gold Corporation produces and sells gold and copper. It is also involved in exploration and mine development activities. The stock currently has a dividend yield of 1.7%. Currently there are 2 analysts that rate Barrick Gold a buy, 1 analyst rates it a sell, and 14 rate it a hold.

The average volume for Barrick Gold has been 14.4 million shares per day over the past 30 days. Barrick has a market cap of $13.9 billion and is part of the basic materials sector and metals & mining industry. Shares are down 30.1% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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 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 ratings report include:
  • 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.

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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