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Newmont Corporation (NEM) Stock Sinks As Market Gains: Here's Why

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The latest trading session saw Newmont Corporation (NEM - Free Report) ending at $40.65, denoting a -1.57% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.27%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.88%.

The gold and copper miner's shares have seen a decrease of 2.73% over the last month, not keeping up with the Basic Materials sector's loss of 2.41% and the S&P 500's gain of 2.85%.

Analysts and investors alike will be keeping a close eye on the performance of Newmont Corporation in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.50, marking a 51.52% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.49 billion, up 29.96% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $2.41 per share and a revenue of $16.03 billion, demonstrating changes of +49.69% and +35.69%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Newmont Corporation. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.33% rise in the Zacks Consensus EPS estimate. Newmont Corporation is currently a Zacks Rank #1 (Strong Buy).

Looking at valuation, Newmont Corporation is presently trading at a Forward P/E ratio of 17.17. Its industry sports an average Forward P/E of 16.63, so one might conclude that Newmont Corporation is trading at a premium comparatively.

One should further note that NEM currently holds a PEG ratio of 0.34. 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. The Mining - Miscellaneous industry had an average PEG ratio of 3.26 as trading concluded yesterday.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 188, finds itself in the bottom 26% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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