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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 $42.46, marking a -0.68% move from the previous day. This change lagged the S&P 500's 1.15% gain on the day. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 7.23%.

Heading into today, shares of the gold and copper miner had gained 5.09% over the past month, outpacing the Basic Materials sector's gain of 4.33% and the S&P 500's gain of 3.08% in that time.

Wall Street will be looking for positivity from Newmont Corporation as it approaches its next earnings report date. On that day, Newmont Corporation is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 6.52%. Meanwhile, our latest consensus estimate is calling for revenue of $2.84 billion, down 7.23% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.50 per share and revenue of $12.22 billion, which would represent changes of +35.14% and +2.58%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Newmont Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 3.22% higher within the past month. Newmont Corporation is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Newmont Corporation's current valuation metrics, including its Forward P/E ratio of 17.11. This valuation marks a premium compared to its industry's average Forward P/E of 9.1.

It is also worth noting that NEM currently has a PEG ratio of 1.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Miscellaneous was holding an average PEG ratio of 1.74 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 179, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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