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

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Newmont Corporation (NEM - Free Report) closed the most recent trading day at $46.82, moving -1.14% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.77%. On the other hand, the Dow registered a gain of 1.42%, and the technology-centric Nasdaq increased by 2.28%.

Shares of the gold and copper miner witnessed a gain of 4.48% over the previous month, beating the performance of the Basic Materials sector with its loss of 0.29% and the S&P 500's loss of 5.73%.

Market participants will be closely following the financial results of Newmont Corporation in its upcoming release. The company is forecasted to report an EPS of $0.71, showcasing a 29.09% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.53 billion, indicating a 12.61% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.13 per share and revenue of $18.12 billion. These totals would mark changes of -10.06% and -3%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Newmont Corporation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 9.25% decrease. At present, Newmont Corporation boasts a Zacks Rank of #4 (Sell).

Looking at its valuation, Newmont Corporation is holding a Forward P/E ratio of 15.14. This represents a premium compared to its industry's average Forward P/E of 13.83.

Investors should also note that NEM has a PEG ratio of 0.44 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. NEM's industry had an average PEG ratio of 1.03 as of yesterday's close.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 140, which puts it in the bottom 45% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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