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Why the Market Dipped But Newmont Corporation (NEM) Gained Today

The latest trading session saw Newmont Corporation (NEM) ending at $42.60, denoting a +0.8% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 0.31%. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq lost 1.09%.

Shares of the gold and copper miner have appreciated by 0.67% over the course of the past month, outperforming the Basic Materials sector's loss of 6.38% and lagging the S&P 500's gain of 2.73%.

Analysts and investors alike will be keeping a close eye on the performance of Newmont Corporation in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.50, showcasing a 51.52% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $3.49 billion, up 29.96% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.44 per share and a revenue of $16.03 billion, representing changes of +51.55% and +35.69%, respectively, from the prior year.

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Investors should also pay attention to any latest changes in analyst estimates for Newmont Corporation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 2.92% rise in the Zacks Consensus EPS estimate. Newmont Corporation currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Newmont Corporation has a Forward P/E ratio of 17.3 right now. Its industry sports an average Forward P/E of 16.27, so one might conclude that Newmont Corporation is trading at a premium comparatively.

It's also important to note that NEM currently trades at a PEG ratio of 0.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Mining - Miscellaneous was holding an average PEG ratio of 2.51 at yesterday's closing price.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 201, which puts it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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Newmont Corporation (NEM) : Free Stock Analysis Report

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