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A Big Upgrade for Barrick Gold

By Dave Mock - Updated Apr 5, 2017 at 7:54PM

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This bullish call comes from more than just one analyst.

Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks -- and the track records of the firms behind them -- so individuals can make better investing decisions.

In addition to following these professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 125,000 members, many of whom demonstrate better investing insight than published analysts do.

More top-performing CAPS members are feeling bullish on Barrick Gold (NYSE:ABX) these days, upgrading it from its four-star rank to a more formidable five stars. A total of 1,707 members have given their opinion on Barrick Gold, with many offering analysis and commentary explaining the recent optimism.

Shares in gold miners like Barrick, Yamana Gold (NYSE:AUY), and Kinross Gold (NYSE:KGC) are fighting back from the dive that they took earlier this year. Though the road to recovery is bound to be bumpy, many investors see the 2008 gold correction as a thing of the past, since gold bullion prices have been on the rise in recent months.  

Barrick and peer Newmont Mining (NYSE:NEM) both laid out plans to run tight operations and delay projects as necessary in the face of economic uncertainty. The swift moves could tighten supply and put upward pressure on the price of gold. And with executives from Barrick and Gold Fields estimating a rising all-in cost of production for gold, many are bullish on its long-term price, including Goldcorp (NYSE:GG) founder Rob McEwen.

While the tight credit markets and overall global economic malaise have slowed the mining mergers-and-acquisitions market -- such as with BHP Billiton's (NYSE:BHP) ended pursuit of Rio Tinto (NYSE:RTP) -- Barrick CFO Jamie Sokalsky recently said that companies and projects are looking exceptionally cheap to acquire. And Barrick is in a better position to go shopping than many others with its $1.7 billion in cash and recent successful bond offering.  

To see all the reasons that CAPS analysts are more bullish now about Barrick Gold -- as well as other winning stocks they are picking -- head on over to CAPS and have a look, and don't forget to add your own opinion.

More Foolishness:

On Jan. 12, 2009, Fool co-founder David Gardner, Jeff Fischer, and their Motley Fool Pro team will accept new subscribers to their real-money portfolio service. Motley Fool Pro is investing $1 million of the Fool's own money in long and short positions in a range of securities, including common stocks, put and call options, and exchange-traded funds (ETFs). They also incorporate proprietary CAPS "community intelligence" data into their research. To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below.

Fool contributor Dave Mock owns no shares of companies mentioned here. The Fool's disclosure policy takes only a splash of eggnog in its rum.

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Stocks Mentioned

Barrick Gold Corporation Stock Quote
Barrick Gold Corporation
GOLD
$16.40 (-0.79%) $0.13
BHP Group Stock Quote
BHP Group
BHP
$55.35 (0.77%) $0.42
Goldcorp Inc. Stock Quote
Goldcorp Inc.
GG
Newmont Mining Corporation Stock Quote
Newmont Mining Corporation
NEM
$45.30 (-0.96%) $0.44
Kinross Gold Corporation Stock Quote
Kinross Gold Corporation
KGC
$3.52 (0.28%) $0.01
Yamana Gold Inc. Stock Quote
Yamana Gold Inc.
AUY
$5.04 (0.00%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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