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Newmont Corporation (NEM) Rises Yet Lags Behind Market: Some Facts Worth Knowing

The most recent trading session ended with Newmont Corporation (NEM) standing at $40.91, reflecting a +0.22% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.77%. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.95%.

The gold and copper miner's shares have seen a decrease of 6.68% over the last month, not keeping up with the Basic Materials sector's loss of 5.19% and the S&P 500's gain of 3.71%.

The investment community will be paying close attention to the earnings performance of Newmont Corporation in its upcoming release. It is anticipated that the company will report an EPS of $0.50, marking a 51.52% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.49 billion, indicating a 29.96% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.42 per share and revenue of $16.03 billion, indicating changes of +50.31% and +35.69%, respectively, compared to the previous year.

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Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Newmont Corporation. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.94% upward. Newmont Corporation currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Newmont Corporation is presently being traded at a Forward P/E ratio of 16.87. This denotes a premium relative to the industry's average Forward P/E of 16.05.

One should further note that NEM currently holds a PEG ratio of 0.35. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Mining - Miscellaneous stocks are, on average, holding a PEG ratio of 3.11 based on yesterday's closing prices.

The Mining - Miscellaneous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 212, positioning it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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Newmont Corporation (NEM) : Free Stock Analysis Report

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