ABX:CC - Barrick Gold: What Gold Miner Bulls Are Missing

2024-05-02 11:27:59 ET

Summary

• Investors, both on Wall Street and Main Street, now love Barrick Gold stock as gold prices soared recently.
• However, the correlation between gold prices and gold miners' stock prices is nonlinear and not immediate.
• Factors causing such nonlinearity include the time delay of expanding mining capacity and rising operating production costs.
• Due to these factors, I don't see good odds for GOLD stock to outperform (or even match) returns from gold prices in the near term.

Barrick Gold: loved by Wall Street and Main Street

Investors, both on Wall Street and Main Street, now love Barrick Gold (GOLD). The following chart summarizes the current ratings on GOLD stock from Seeking Alpha writers (which I use to approximate Main Street's opinion) and also from Wall Street analysts. Seeking Alpha writers rate the stock as a BUY with an overall rating of 3.55. Out of the 9 authors who wrote on the stock in the past 90 days, 5 of them rated the stock either as a buy or a strong buy. Wall Street's sentiment is even more bullish, with an overall score of 4.08. Out of the 23 analysts who wrote on the stock in the past 90 days, 16 of them rated the stock either as a buy or a strong buy....

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