Back to top

Image: Bigstock

Newmont Corporation (NEM) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, Newmont Corporation (NEM - Free Report) closed at $63.67, marking a -1.61% move from the previous day. This change lagged the S&P 500's daily loss of 1.16%. At the same time, the Dow lost 1.84%, and the tech-heavy Nasdaq lost 0.13%.

Prior to today's trading, shares of the gold and copper miner had lost 3.75% over the past month. This has lagged the Basic Materials sector's gain of 2.1% and the S&P 500's loss of 1.96% in that time.

NEM will be looking to display strength as it nears its next earnings release. In that report, analysts expect NEM to post earnings of $0.69 per share. This would mark year-over-year growth of 91.67%. Our most recent consensus estimate is calling for quarterly revenue of $3.17 billion, up 16.91% from the year-ago period.

NEM's full-year Zacks Consensus Estimates are calling for earnings of $2.26 per share and revenue of $11.40 billion. These results would represent year-over-year changes of +71.21% and +17.08%, respectively.

Investors should also note any recent changes to analyst estimates for NEM. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.22% higher. NEM currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, NEM is holding a Forward P/E ratio of 28.67. For comparison, its industry has an average Forward P/E of 18.17, which means NEM is trading at a premium to the group.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% 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.

To follow NEM in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Newmont Corporation (NEM) - free report >>

Published in