Analysts Aren’t Bullish on These Gold Stocks before Q3 Earnings



Lowest “buy” ratings

Among the senior and intermediate miners (GDX) (GDXJ), New Gold (NGD), Barrick Gold (ABX), and Eldorado Gold (EGO) have the fewest “buy” ratings at 0.0%, 14.0%, and 17.0%, respectively.

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New Gold stock has tanked 76.0% so far in 2018 due to delays at its Rainy River mine. In the most recent quarter, Rainy River’s gold grade, gold recovery, and ore throughput came in below the market’s expectations.

Eldorado Gold (EGO) stock has seen rapidly deteriorating analyst sentiments in the past year. Currently, only 17.0% of the analysts covering the stock rate it as a “buy.” That stands in sharp contrast to the ~50.0% “buy” ratings it had almost a year ago.

Barrick Gold (ABX) has “buy” ratings from only 14.0% of the analysts covering its stock. The company’s “buy” ratings have fallen consistently over the last year. One year ago, 42.0% of analysts recommended a “buy.”

Barrick’s merger

On September 24, Barrick Gold agreed to acquire Randgold Resources (GOLD) in a share-for-share deal. This acquisition should provide the much-needed catalyst for ABX stock.

After the deal was announced, Barrick received two upgrades from Citi and TD Securities, which believe the merger could provide credibility to Barrick’s turnaround.

For a detailed analysis of senior and intermediate miners’ ratings, please read Five Gold Stocks that Analysts Love and Five Not So Much.

In the next part of this series, we’ll look at the revenue estimates for these miners.


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