By Ryan McQueeney
Shares of Barrick Gold Corp. (ABX - Analyst Report), one of the largest gold mining companies in the world, are down about 2.15% in morning trading Thursday after the company failed to meet revenue expectations in its second-quarter earnings report.
After the closing bell Wednesday, Barrick announced earnings of 14 cents per share, which matched the Zacks Consensus Estimate; however, the company’s quarterly revenues of $2.01 billion just missed our estimate of $2.04 billion.
Gold has rode the wave of economic uncertainty throughout 2016, and many gold mining companies have benefitted from increased prices this year. We are right in the thick of a busy second-quarter earnings season, and with Barrick disappointing, the spotlight is firmly on the rest of the industry.
There’s still a plethora of gold miners still preparing to report, but for those investors looking to make a play in this area after Barrick’s announcement, check out these three stocks:
1. New Gold Inc (NGD - Snapshot Report) –Zacks Rank #1 (Strong Buy)
New Gold is one of the miners which has already announced its most recent earnings data, and its report impressed. The company’s EPS of 3 cents came in above the Zacks Consensus Estimate, which called for break-even earnings. With an “A” grade in the Growth category of our Style Scores system, New Gold has proved its ability to post near-highs for earnings growth this year.
2. Franco-Nevada Corp. (FNV - Snapshot Report) –Zacks Rank #1 (Strong Buy)
Franco-Nevada is getting set to report on August 8, and its estimate revision activity is looking favorable heading into the announcement. In the last 30 days, we have seen four positive revisions for the company’s second-quarter earnings, and the Zacks Consensus Estimate is now a penny higher than it was last month. After an earnings beat of over 30% last quarter, Franco-Nevada will hope to continue its solid run.