Potential buying opportunity in Barrick Gold (GOLD) stock due to decline, strong operational performance

From Nasdaq: 2024-06-20 12:34:19

Barrick Gold Corporation (GOLD) stock price has declined, creating a potential buying opportunity for investors. Analysts rate the stock a “Strong Buy” with a projected upside of around 33% due to Barrick’s strong operational performance and favorable market conditions for gold. Citi analysts predict gold prices could reach $3,000 within the next 12 months.

Barrick Gold Corporation (GOLD) reported Q1 earnings that beat expectations but faced headwinds in production. The company saw a year-over-year revenue increase of 4.2% to $2.75 billion driven by higher gold prices. Despite lower production and increased costs, Barrick’s adjusted net earnings rose to $333 million. Analysts expect earnings to reach $1.06 per share in fiscal 2024, representing a year-over-year increase of 26.19%.

Barrick Gold (GOLD) recently entered an exploration agreement with Geophysx Jamaica Ltd. in Jamaica. The company reported a 12,000 ounce decrease in total gold production in Q1 due to maintenance, while copper output remained stable at 40,000 metric tons. Barrick affirmed its full-year production targets and expects costs to decrease with higher production volumes. The stock currently trades at 14.61 times earnings estimate for 2024 and offers a 2.44% dividend yield.



Read more at Nasdaq: Buy the Dip in This Gold Mining Stock