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Newmont Corporation (NEM) Outpaces Stock Market Gains: What You Should Know

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Newmont Corporation (NEM - Free Report) closed at $48.55 in the latest trading session, marking a +1.59% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.56%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, added 1.35%.

Prior to today's trading, shares of the gold and copper miner had gained 7.98% over the past month. This has outpaced the Basic Materials sector's loss of 3.21% and the S&P 500's loss of 1.48% in that time.

Wall Street will be looking for positivity from Newmont Corporation as it approaches its next earnings report date. The company is expected to report EPS of $0.28, down 59.42% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.85 billion, down 5.57% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.24 per share and revenue of $11.87 billion. These totals would mark changes of +21.08% and -0.42%, respectively, from last year.

Any recent changes to analyst estimates for Newmont Corporation should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 8.07% lower. Newmont Corporation is currently a Zacks Rank #3 (Hold).

In terms of valuation, Newmont Corporation is currently trading at a Forward P/E ratio of 21.34. This valuation marks a premium compared to its industry's average Forward P/E of 9.73.

Investors should also note that NEM has a PEG ratio of 1.83 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Mining - Miscellaneous stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% 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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