Barrick Gold Corp
ABX
Delayed Toronto Stock Exchange - 12/13 09:32:06 pm
18.84CAD
+0.48%

The resistance should give in

Envoyer par e-mail
David Meurisse
Contributor / Partner

Strategy published on : 12/04/2018 | 16:27

long trade
Live

Entry price : 17.46CAD
Target : 21.7CAD
Stop-loss : 15.9CAD
Potential : 24.28%

Shares in Barrick Gold Corp are approaching an important resistance level. The stock's technical chart suggests that this pivot level will be broken.
Investors have an opportunity to buy the stock and target the CAD 21.7.

Summary

● In view of fundamental criteria, the company is among low performers as far as mid or long-term investment strategy is concerned.

● For a short-term investment strategy, the company has poor fundamentals.


Strengths

● The group's high margin levels account for strong profits.


Weaknesses

● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.

● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.

● As estimated by analysts, this group is among those businesses with the lowest growth prospects.

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 36.21 times its estimated earnings per share for the ongoing year.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.

● Analysts covering the stock have recently lowered their earnings forecast.

● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.

● For the past year, analysts have significantly revised downwards their profit estimates.

Zonebourse.com 2018
Envoyer par e-mail