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Newmont Corporation (NEM) Gains But Lags Market: What You Should Know

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In the latest trading session, Newmont Corporation (NEM - Free Report) closed at $53.34, marking a +1.66% move from the previous day. This move lagged the S&P 500's daily gain of 1.89%. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 10%.

Heading into today, shares of the gold and copper miner had gained 10.46% over the past month, outpacing the Basic Materials sector's gain of 8.45% and the S&P 500's gain of 2.3% in that time.

Newmont Corporation will be looking to display strength as it nears its next earnings release, which is expected to be February 23, 2023. The company is expected to report EPS of $0.39, down 50% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.92 billion, down 13.77% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Newmont Corporation. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 2.35% lower. Newmont Corporation is currently a Zacks Rank #3 (Hold).

Investors should also note Newmont Corporation's current valuation metrics, including its Forward P/E ratio of 23.34. This represents a premium compared to its industry's average Forward P/E of 11.58.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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