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

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In the latest trading session, Newmont Corporation (NEM - Free Report) closed at $52.05, marking a -0.04% move from the previous day. This change lagged the S&P 500's 0.36% gain on the day. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 1.91%.

Heading into today, shares of the gold and copper miner had gained 23.51% over the past month, outpacing the Basic Materials sector's loss of 3.1% and the S&P 500's gain of 1.24% in that time.

Investors will be hoping for strength from Newmont Corporation as it approaches its next earnings release. On that day, Newmont Corporation is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 57.97%. 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 $11.9 billion. These totals would mark changes of +21.08% and -0.15%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Newmont Corporation. These revisions help to show the ever-changing nature of near-term business trends. 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 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. Within the past 30 days, our consensus EPS projection has moved 2.4% 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 23.23. For comparison, its industry has an average Forward P/E of 10.58, which means Newmont Corporation is trading at a premium to the group.

Investors should also note that NEM has a PEG ratio of 1.99 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NEM's industry had an average PEG ratio of 2.09 as of yesterday's close.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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